Which of the following statements regarding leases and taxes is FALSE?
A)In a non-tax lease,the lessee can deduct the interest portion of the lease payments as an interest expense.
B)In a true tax lease,the lease payments are treated as revenue for the lessor.
C)In a true tax lease,the lessee receives the depreciation deductions associated with the ownership of the asset.
D)The IRS separates leases into two broad categories: true tax leases and non-tax leases.

Question

Quizplus · Accepted Answer

In a true tax lease, the lessor, not the lessee, receives the depreciation deductions associated with the ownership of the asset.

Which of the Following Statements Regarding Leases and Taxes Is