Lease payments are deductible business expenses, while if a building is owned, only depreciation is deductible for tax purposes.

Lease Payments

Regular payments made by a lessee to a lessor for the use of leased property, equipment, or vehicles, as agreed upon in a lease contract.

Deductible Business Expenses

Expenses incurred during business operations that can be subtracted from gross income to reduce taxable income.

Depreciation

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time due to use and wear.