Quote:
Originally Posted by oifmarine2003
Think of it this way. If you are leasing something, at the end of the lease term you will have no asset (i.e. the building) to show for it. All of that money has gone to basically renting it from someone else. On the other hand, if you were to buy it, those same payments you are making are leaving you with a piece of the asset. With each mortgage payment, you have more equity in the building. At the end of 15 or 30 years,depending on the mortgage, you will have an asset that you own (the building). If you leased it for 30 years, at the end of the lease, you would have no asset. That is why lease payments are deductible.
Also, you can write off property taxes if you own the building but not if you lease it.
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Interest portion of the payment is also deductible if buying.
