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

Question

Quizplus · Accepted Answer

Option D is the correct answer because the lessor can use the capital cost allowance tax shield from ownership. When a property is leased, the lessor can claim capital cost allowance (CCA) deductions on the asset, which reduces their taxable income. By owning the asset, the lessor can use the CCA tax shield to reduce their income taxes. The other options (A, B, and C) are incorrect, as they do not provide tax benefits for the lessor in a lease agreement.

A Lessor Finds a Lease Attractive from a Tax Viewpoint