Re: simple question regarding how to view a lease as a debt
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isnt it better to just look at it in a cashflow sense? i mean i am always going to have to pay for electricty, but i dont count that as a 100k liftime debt.
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You can look at it however you like but that doesn't change the accounting guidelines that say a lease obligation is simply a debt with no ofsetting asset.
As for your electricity you didn't sign a contract with the electric company. You can choose to live in a tent if you like, for that matter if you intend on defaulting on your lease don't use it in your net worth calculation either, use the judgement the court will levy.
Jimbo
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