A lessor finds a lease attractive from a tax viewpoint because he:

Question

Quizplus · Accepted Answer

When a lessor leases out their assets, they can still claim capital cost allowance (CCA) on the asset while the lessee pays a lease payment. This means that the lessor can use the CCA tax shield from ownership to lower their taxable income. Therefore, choice D is the correct answer. A, B, and C are incorrect because they do not accurately represent the tax benefits for a lessor in a lease agreement.

A Lessor Finds a Lease Attractive from a Tax Viewpoint