Does leasing have tax benefits for a firm ?

The White Bull's picture
Rank: Orangutan | 298

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?

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Jan 31, 2019

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 ...
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  • 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...

  • Developer in Acct - Audit
Mar 4, 2019
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