Lease payments are deductible business expenses, while if a building is owned, only depreciation is deductible for tax purposes.

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Lease payments are considered a business expense and are therefore deductible for tax purposes. In contrast, when a building is owned, the owner cannot deduct the purchase price or principal payments made on a mortgage; instead, they can deduct depreciation, which is an allowance for the wear and tear, deterioration, or obsolescence of the property.

Lease Payments Are Deductible Business Expenses, While If a Building