Leasing land provides a tax advantage to the lessee in that lease payments are tax deductible,while there is no deduction for amortization for a landowner.

Question

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Lease payments are considered a legitimate business expense and can be deducted from the lessee's taxable income. Landowners, on the other hand, do not have the option to deduct amortization since land is not a depreciable asset.

Leasing Land Provides a Tax Advantage to the Lessee in That