Electing Tax Benefits in Leasing Transactions

Daily Tax Report, Vol. 26, p. J1, February 8, 2011

Georgia State University College of Law, Legal Studies Research Paper

12 Pages Posted: 24 May 2011  

Ronald Blasi

Georgia State University College of Law

Date Written: February 8, 2011

Abstract

This article recommends allowing a lessor and a lessee to decide between themselves which party will be entitled to the tax benefit associated with the ownership of the leased property. It describes why the current linkage of tax benefits to property ownership is economically inefficient and disadvantageous to the parties and to the economy as a whole. Existing law diminishes the intended effect of tax incentive legislation, reduces a firm’s cash flow and reported earnings, distorts competition and decision making, and inhibits investment in efficient business assets. The proposed election addresses these shortcomings, while not violating anti-avoidance tenets of taxation.

Keywords: tax, taxation, tax benefit, leases, real property, property, tax incentives, tax law, law and economics

JEL Classification: E62, H20, H25, H29, K00, K11, K34

Suggested Citation

Blasi, Ronald, Electing Tax Benefits in Leasing Transactions (February 8, 2011). Daily Tax Report, Vol. 26, p. J1, February 8, 2011; Georgia State University College of Law, Legal Studies Research Paper . Available at SSRN: https://ssrn.com/abstract=1831449

Ronald Blasi (Contact Author)

Georgia State University College of Law ( email )

P.O. Box 4037
Atlanta, GA 30302-4037
United States

Paper statistics

Downloads
66
Rank
281,491
Abstract Views
577