Can I confirm that in a “Capital lease” for tax purposes the property is treated as an asset for the lease(tenant) and they get to depreciate it on their taxes, and deduct interest on payments. Would they also deduct the property tax paid for the property? Or would the Lessor deduct that?
and on the lessor's (original owner) side they report only the interest received from the lease? Do they report the rest of the payment received anywhere. And do they get to deduct the interest they have on their original loan for the property?
