It is not a question of the value of the lease. The lease must be at FMV. The tests do not apply at the lease level.
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How does one value a lease for purposes of the 70% test or the 90% test?
Regarding the treatment of leased property and the assets, acquisition, and original use and substantial improvements test, how does one value a lease for purposes of the 70% test or the 90% test?
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This is addressed in the second tranche of guidance. The Arizona Commerce Authority did a webinar about this a few weeks ago.
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