![Grant Gilmour](https://www.taxconnections.com/taxblog/wp-content/uploads/GG-7.13-26.png?resize=90%2C90&ssl=1)
What are Capital Leases on a Balance Sheet? The Capital Leases category appears as a long term liability on a Balance Sheet. A Capital Lease is a contract that allows the lessee to use the asset for a specific period of time. The corresponding asset is listed as a Capital Asset on the Balance Sheet.
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