This study presents comprehensive formal expressions for the net advantage of leasing over buying, Δ, in the presence of all of the following parameters of the leasing issue: intertemporal changes in tax rates, loan repayment schedule, financial leverage, scrap value and inflation. The leasing model derived in this study implies the following results. When the tax rate to the lessor (Tr) is higher than that to the lessee (Te,), Δ increases with the present value of both depreciation and interest deductions. Interestingly, Δ can.also be positive even if Te> T Tr. The existence of positive salvage value increases Δ even higher, independently of the depreciation and loan repayment schedules. The financial leverage has a positive impact on Δ, while the impact of inflation on Δ depends on both the depreciation and loan repayment schedule as well as on the inflation level itself. A discount-rate asymmetry also has an impact on Δ. Specifically, Δ is positive (negative) as the discount rate of the lessor is lower (higher) than the discount rate of the lessee. Finally, when intertemporal differences in tax rate exist either to the lessor and/or to the lessee, Δ increases.