Which of the following is NOT a benefit of a sale-leaseback of land for investors?
A) It is a way of effectively obtaining 100% financing
B) The lease payments are tax deductable
C) Land can not be depreciated for tax purposes
D) The land value may increase over the holding period

Question

Quizplus · Accepted Answer

A sale-leaseback allows investors to free up capital and potentially obtain 100% financing (A), and lease payments are typically tax-deductible (B). Land cannot be depreciated for tax purposes (C), which is a reason for sale-leaseback. However, the potential increase in land value (D) is not a benefit of a sale-leaseback, as the investor no longer owns the land.

Which of the Following Is NOT a Benefit of a Sale-Leaseback