Capital Lease for Tax Purposes?

[Howco]

Taxpayer acquires heavy equipment with a lease. FMV is $73,000. Taxpayer makes 60 monthly lease payments for $854/month, then has optional final payment at end of lease term for $24,000, when FMV is expected to be $30,000.

Can this equipment be capitalized for income tax purposes?

[BOB W]

When lease buy out exceeds 10% of the FMV at the time the lease started, then it is a lease. The purchase price here is considered a used equipment purchase for the amount paid, 24,000. I don't think FMV matters at the time of option to buy.