Also referred to as Terminal Rental Adjustment Clause. A lessee guaranteed residual value for vehicle leases (automobiles- trucks or trailers)- the inclusion of which will not- in and of itself- disqualify the tax lease status of a tax-oriented vehicle lease. Contained in 1984 Tax Act.

The following video provides you with the correct English pronunciation of the word "TRAC Lease", to help you become a better English speaker.