Leasing is a method of funding that appeared as an alternative way of funding investmentsagainst cash loans. Today in USA where leasing appeared first, a major fragment of thepresent investments are being funded by leasing. Leasing has spread all over the worldquickly, due to the advantages it provides to investors; and it has been supplying a vitalnecessity to the investors who experience difficulty in obtaining cash loans.Although its first emergence as a funding technique, leasing has brought numerous legaldisputes since it is also a private law contract. Nonetheless, it is intended to stimulate theinvestments by using the leasing technique. Hence, while various taxation advantages havebeen provided to leasing; the complexity of the subject has caused numerous controversiesfrom taxation standpoint. Furthermore, the subject exhibits various special aspects from theperspective of the accounting technique. Therefore, to increase the understandability of thesubject, the historical development of leasing, pros and cons, the types of leasing are studiedin the first chapter of the thesis. Following this advance information chapter, Law, Tax andAccounting constitute the main headings of the study. The subject is deeply analyzed fromeach of the three disciplines? point of view, and in controversial cases, Council of State?s andSupreme Court of Appeals? judgments and Revenue Administration Office?s thoughts andadditional jurisprudences are explained.

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