TORONTO TRANSIT SALE-LEASEBACK

Toronto City Council has approved the sale and leaseback of the Toronto Transit Commission's 372 subway cars, which could save the city an estimated Cdn$50-80 million over 26 years. Advisors and lawyers will now be looking for U.S. investors to buy the cars and lease them back to the city. U.S. tax law allows such investors to deduct the depreciation cost of the assets, which in turn enables them to lease them back to Toronto at a lower cost than the city itself can finance them. That is because under Canadian tax law, a municipality cannot deduct the depreciation.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/19598638
• Corporate Authors:

  Public Works Financing

  147 Elmer Street
  Westfield, NJ  United States  07090-2433
• Authors:
  • Westell, D
• Publication Date: 2000-7

Language

• English

Media Info

• Pagination: p. 32
• Serial:
  • Public Works Financing
  • Volume: 142
  • Publisher: Public Works Financing
  • ISSN: 1068-0748

Subject/Index Terms

• TRT Terms: Costs; Depreciation; Investments; Laws; Leasing; Savings; Subways; Taxes
• Identifier Terms: Toronto Transit Commission
• Uncontrolled Terms: Leaseback
• Geographic Terms: Toronto (Canada); United States
• Subject Areas: Finance; Law; Public Transportation;

Filing Info

• Accession Number: 00798390
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 12 2000 12:00AM