[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.4217-1]

[Page 161]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 48_MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
     Subpart M_Special Provisions Applicable to Manufacturers Taxes
 
Sec. 48.4217-1  Lease considered as sale.

    For purposes of Chapter 32 of the Code, the lease of an article by a 
manufacturer, producer, or importer shall be considered a sale of the 
article. The term ``lease'' means a contract or agreement, written or 
verbal, which gives the lessee an exclusive, continuous right to the 
possession or use of a particular article for a period of time. The term 
includes any renewal or extension of a lease or any subsequent lease of 
the article. However, in the case of the lease of an automobile the sale 
of which by the manufacturer would be taxable under section 4064, the 
term includes only the first lease (excluding any renewal or extension 
of the lease) of such automobile by the manufacturer.

[T.D. 7536, 43 FR 13521, Mar. 31, 1978, as amended by T.D. 8036, 50 FR 
29963, July 23, 1985]

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