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SD | Think of rental ground as a lease on equipment. Its a straight deduction and usually easy to get out of the short term lease. A purchase on the other hand has the interest and balance on the loan to contend with. Only the interest can be deducted. The final value of the asset (land or equipment) is not fully known until it is sold. Usually equipment depreciates and land appreciates, but that is not always the case. | |
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