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Tax benefits of leasing

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  • Bell, Timothy J.
  • Thomas, Jacob

Abstract

Financial economists view the tax benefits of leasing as transaction-specific functions of the tax effects of rents, depreciation, and interest attributed to lessors and lessees facing different tax rates. We offer two conceptual ways to characterize those tax benefits.

Suggested Citation

  • Bell, Timothy J. & Thomas, Jacob, 2013. "Tax benefits of leasing," Economics Letters, Elsevier, vol. 120(2), pages 338-341.
    • Handle: RePEc:eee:ecolet:v:120:y:2013:i:2:p:338-341
    DOI: 10.1016/j.econlet.2013.05.005
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    References listed on IDEAS

    as
    1. Miller, Merton H & Upton, Charles W, 1976. "Leasing, Buying, and the Cost of Capital Services," Journal of Finance, American Finance Association, vol. 31(3), pages 761-786, June.
    2. Paul A. Samuelson, 1964. "Tax Deductibility of Economic Depreciation to Insure Invariant Valuations," Journal of Political Economy, University of Chicago Press, vol. 72, pages 604-604.
    3. John R. Graham & Michael L. Lemmon & James S. Schallheim, 1998. "Debt, Leases, Taxes, and the Endogeneity of Corporate Tax Status," Journal of Finance, American Finance Association, vol. 53(1), pages 131-162, February.
    4. Smith, Clifford W, Jr & Wakeman, L MacDonald, 1985. "Determinants of Corporate Leasing Policy," Journal of Finance, American Finance Association, vol. 40(3), pages 895-908, July.
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    Cited by:

    1. Thierry Kamga Tadie & Claude Essomba Ambassa & Louis Aimé Fono & Jules Sadefo-Kamdem, 2021. "Criteria for choosing the method of leasing finances in Small and Medium Enterprises (SMEs) in Cameroon [Critères de choix du mode de financement par crédit-bail dans les Petites et Moyennes Entrep," Post-Print hal-03131640, HAL.

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    More about this item

    Keywords

    Tax benefits; Leasing; Economic depreciation;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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