Tax Implications LESSOR Benefit of depreciation tax savingS DTs Lease payments received are taxable LESSEE. a Lease payments under a genuine lease? are tax deductible if the leased asset is used to generate taxable incomeTax Implications LESSOR: ◼ Benefit of depreciation tax savings (DTS). ◼ Lease payments received are taxable. LESSEE: ◼ Lease payments under a ‘genuine lease’ are tax deductible if the leased asset is used to generate taxable income