If a Corporation leases the property is the lease payment deductible.

In Leasing Property - Asked by Tom P. - Jun 8, 2011
Report Abuse
Answer this Question


Rob M.
Lender/Mortgage Broker
Houston, TX

In most situations, yes. Even some of the qualified leasehold improvements can be depreciated over time, although a shorter time than an actual building. Check with an accountant or tax specialist to get the details on your situation.

Jun 8, 2011
Report Abuse
Brent G.
Columbus, OH

Business expenses are the cost of conducting a trade or business. These expenses are common costs of doing business, and are usually tax deductible if your business is for-profit. Lease payments fall into this category.

Jun 8, 2011
Report Abuse
Rob B.
Chandler, AZ

Yes, in all for-profit corporations the lease payments are usually deductable. In all accounting questions you should verify with a tax accountant deduction questions.
Nearly all-reasonable business expenses are deductible in a corporate entity. Some property owners used a corporate entity to shield their real estate investments from personal liability. Used well this can be a solid form of ownership and one can with tax guidance avoid the double taxation that can occur with a corporate entity.
Onward and upward… Rob Baird

Jun 14, 2011
Report Abuse
Dina C.
Overland Park, KS

Yes, generally the lease payments are deductible HOWEVER that is about to change. You will want to bring yourself up to date on this very hot topic. The new FASB rules are set to change all that! There has been quite alot of push back and if this rule change goes through in its current form much of our analysis metrics will have to change as well. A bit too complicated for this format. Google something like: FASB lease accounting new rules.

Jun 16, 2011
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question