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amigo_boy

join:2005-07-22

reply to Linklist

Re: Good going

said by Linklist:

State & local taxes can be eliminated and federal taxes can be reduced as leases are operational expenses that reduce taxable income.
Doesn't the new owner of the towers have the same tax consequences that the towers previously caused for Sprint? Won't they just pass that along to Sprint?

Mark


Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

said by amigo_boy:

said by Linklist:

State & local taxes can be eliminated and federal taxes can be reduced as leases are operational expenses that reduce taxable income.
Doesn't the new owner of the towers have the same tax consequences that the towers previously caused for Sprint? Won't they just pass that along to Sprint?

Mark
That would all be taken in to account with the terms of the lease. Obviously the tower company would want all their costs( + a profit) covered in the lease. So the localities aren't losing anything, but Sprint gets advantages by having the costs covered "above the line" in the lease.
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