Question: Tax effect. Lease payments are expenses that can be written off against income immediately. Loans are depreciated over a longer period of time. One major

Tax effect. Lease payments are expenses that can be written off against income immediately. Loans are depreciated over a longer period of time. One major advantage of leases over loans is the impact leases have on land use. When a firm leases land for its operations, it can not deduct the lease expense from income. Purchased land, on the other hand, can be deducted from tax obligations.

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