sale-in, lease-out (SILO) business definition
A financial arrangement in which a tax-exempt entity sells an asset to a private investor or investment group and then leases the asset back. For example, a city sells an office building to a private investment group that leases the building back to the city. The transaction offers the investment group tax advantages, such as depreciation expense, that are not available to the city. Legislation in 2004 restricted use of these arrangements.