If a lessee has a zero tax rate, he faces no advantage of leasing over buying, since he gets no tax shelter in either case.

Name: If a lessee has a zero tax rate, he faces no advantage of leasing over buying, since he gets no tax shelter in either case.
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Quizplus · Accepted Answer

Even with a zero tax rate, a lessee may still find advantages in leasing over buying, such as off-balance-sheet financing, avoiding the risk of asset obsolescence, and having more flexibility in managing cash flow and capital expenditure.

If a Lessee Has a Zero Tax Rate, He Faces