Which of the following is considered a benefit of a capital lease?

A capital lease is structured to provide the lessee with some benefits typically associated with ownership of an asset. The correct answer highlights that tax benefits associated with ownership are significant factors in deciding to enter into a capital lease agreement.

When an asset is classified as a capital lease, the lessee is treated as the owner of the asset for accounting purposes. This means they can depreciate the asset over its useful life, which can lead to substantial tax deductions. Additionally, the lessee may benefit from the deduction of interest expense related to the lease payments. This dynamic can effectively reduce taxable income, thereby providing clear financial advantages.

In contrast, while lower initial payments, flexibility with leasing terms, and a lack of commitment to long-term contracts may be attractive features of certain leasing arrangements, they are not specific to capital leases. These aspects can apply to operating leases or other types of financing arrangements and do not directly correlate with the benefits derived from ownership that capital leases provide. The unique tax advantages associated with capital leases set them apart and make this choice the most accurate in the context of the question.