How does “build to suit” land leasing work? If structures are built on leased land, aren’t they then owned by the lessor after the lease period ends? What is the advantage of this arrangement?
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Tax considerations: if you build it yourself then depreciation schedules are in effect, but when you pay a lease, you rent it and you deduct the cost of the lease. A lot businesses that own land and buildings will sell them to another company and lease them back again.
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