A for-profit company that buys real capital and leases it to a non-profit company can

Question

Quizplus · Accepted Answer

By leasing the capital, the for-profit company can depreciate it and lower its tax liability, which would not be possible if it simply sold the capital to the non-profit company. However, there is no indication that the for-profit company would charge a higher lease rate or price than market value, and whether or not the arrangement adds a net gain to the economy is subjective and dependent on various factors.

A For-Profit Company That Buys Real Capital and Leases It