In general,if the asset's CCA deductions are ________ its lease payments,there are tax ________ from a true tax lease if the lessor is in a lower tax bracket than the lessee.

Question

Quizplus · Accepted Answer

If the asset's CCA deductions are slower than its lease payments, there are tax gains from a true tax lease if the lessor is in a lower tax bracket than the lessee. This is because the lessor can claim the CCA deductions at a lower tax rate than the lessee, resulting in overall tax savings.

In General,if the Asset's CCA Deductions Are ________ Its Lease