"A lease agreement can be constructed to allow ____ deductions that can provide greated deductions than otherwisemight be avialable if CCA was being claimed on a purchase option. "

7. Leases and taxes Aa Aa Leasing is a very important source of financing for certain companies' needs, including corporations and small- to medium-sized businesses. This is because, depending on the type of lease, the Canada Revenue Agency (CRA) allows the lessee to deduct the lease payments and the lessor can deduct interest payments on any debt used to finance the asset leased. A lease agreement can be constructed to allow deductions than otherwise might be available if deductions that can provide greater tax d on a purchase option lower structured accelerated the disapproval of