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

Name: Leasing land through an operating lease provides a tax advantage to the lessee in that lease payments are tax-deductible, while there is no deduction for the landowner.
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Question

Quizplus · Accepted Answer

This is true. The lessee can deduct lease payments as an operating expense on their taxes, while the landowner cannot deduct the lease payments as income.

Leasing Land Through an Operating Lease Provides a Tax Advantage