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Leasing an Asset

TTabasum4y ago
While leasing an asset, the owner of the asset pays tax and not the lessee. In that case why is the tax relief cash flow relevant in calculating lease payments?
John MoffatJohn MoffatTutor4y ago#1
The lessee pays tax on their income less their expenses. The lease payments are allowable for tax and therefore result in a tax saving.
TTabasum4y ago#2
Ohh, now I get it..thank you so much.
John MoffatJohn MoffatTutor4y ago#3
You are welcome :-)
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