Which of the following statements regarding leases and taxes is FALSE?
A) In a non-tax lease, the lessee can deduct the interest portion of the lease payments as an interest expense.
B) In a true tax lease, the lease payments are treated as revenue for the lessor.
C) In a true tax lease, the lessee receives the depreciation deductions associated with the ownership of the asset.
D) The IRS separates leases into two broad categories: true tax leases and non-tax leases.
C
Explanation: C) In a true tax lease, the lessor receives the depreciation deductions associated with the ownership of the asset.
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