Required; found on the Main data tab.
Enter the estimated economic life of the asset in months. If the lease term is 75% or more of the economic life, the lease is capital (unless the leased asset is in the last 25% of its economic life at the inception of the lease). The Economic Life used is typically the period over which you would depreciate the same type of asset if it were owned instead of leased. If the lease is land only, you may leave this field blank, since land is normally considered to have infinite life.
If the lease transfers ownership or has a reasonably certain purchase option, the lease is depreciated over the Economic Life, rather than over the lease term. If the Economic Life is longer than the lease term, at expiration you will have an unamortized balance in your asset account, which typically is transferred to your owned asset account. It can be tracked using the Depreciation over Economic Life report.
You may enter the economic life directly, or if the asset was previously in service, you may enter an in-service date and the original economic life, in which case EZLease will calculate the remaining life, and automatically determine if the lease starts in the last 25% of the asset's economic life.
FAS 13 definition
“The estimated remaining period during which the property is expected to be economically usable by one or more users, with normal repairs and maintenance, for the purpose for which it was intended at the inception of the lease, without limitation by the lease term.” [¶5g]