Does leasing have tax benefits for a firm ?

So I was studying Corporate Finance by Damodaran and it was mentioned that leasing often benefits a firm which is located in a high tax ecosystem. And the lessee should be located in a low tax rate. (because it already is suffering from low cash flows so the last thing it wants is a high tax rate) But shouldn't firms having a high tax rate need to pay more tax when realising capital gains on the sale of the asset?

2 Comments
 

Hey The White Bull, what a lonely thread. I'm here since nobody responded ...so maybe one of these discussions will help:

  • Any insight on Leasing Brokerage for Account/Portfolio pursuits (Mostly Tenant Rep)? Background: currently a second year analyst working debt and equity at a large brokerage shop (they do ... leasing, cap markets, management, you name it). Mostly doing multifamily deals ranging from $3mm-$20mm. ... a (debt) broker, which I'm not sure that I want to do (I'm 24 years old so still feel I have time ...
  • Leasing, Capital Markets, and REITs: The Other White Meat you have the flow. A) How does it stack up against Capital Markets in each of the 3 questions above? ... surprise since many of the well known shops are highly selective, pay handsomely, and provide employees an ... a shot at a top REPE firm like Blackstone, Carlyle, or Fortress. So what else is there and how much worse ...
  • Ground Lease vs. NNN Fee Simple development deal? I'd assume the guy paying for the buildout would want the depreciation benefits. Does ... simple deal has the benefits of depreciation. A ground lease has the benefit of being able to repossess ... the building if the tenant stops making payments. Also, who pays for the buildout in a NNN fee simple ...
  • Retail Lease?'s investment group, they only have one office for one candidate and there is certainly some comp. I actually ... interview, the complexity of retail leases, the only thing this group does, came up and the CFO make it very ... retail leases, that I have bought and plan to begin reading asap. But should I also try to resource my ...
  • Lease Abstracting Service My REPE team is getting too busy to do our own lease abstracting and administration. Does anyone ... in this forum recommend a good third party consulting group that could provide this service for us? ... clients. Thanks Third Party Lease Abstracting ...
  • Leasing roof space/excess space Does anyone have experience leasing roof space to cell companies for towers, or other revenue ... feasibility. Cell towers are just an idea, anything else is cool too lease cell phone ...
  • Car lease recommendations- First Year Analyst outlandish to lease a new car (think Audi A4, 3 series, C class). Keeping in mind that I dont have many other ... year IB analyst very soon. Im going to be living home with my parents (paying no rent) nor will I have ... costs, is it absurd of me to pay ~$440-$500 per month on leasing a new car? Im not a flashy person nor am ...
  • More suggestions...

If those topics were completely useless, don't blame me, blame my programmers...

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Laborum et vel aspernatur nulla non. Dicta sit et sit id et. Laborum nostrum ut fugiat quis.

Voluptatem ea labore esse quis. Ut consequatur voluptate aut voluptatem. Sunt labore non enim itaque aut quia possimus incidunt. Quisquam numquam non ut temporibus repellat illum. Voluptatem perferendis omnis asperiores exercitationem odio sit. Quas quae quasi quae tenetur rem corporis aliquam ducimus.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • Morgan Stanley 05 98.3%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (44) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (78) $151
  • Intern/Summer Analyst (72) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
DrApeman's picture
DrApeman
98.9
9
CompBanker's picture
CompBanker
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”