Can you depreciate operating lease

No, you cannot depreciate an operating lease because it is classified as a rental expense rather than an asset on the balance sheet. Operating leases do not transfer ownership of the asset, so the lessee does not record the leased asset or its depreciation. Instead, lease payments are recorded as an expense on the income statement over the lease term. However, changes in accounting standards, such as ASC 842, require lessees to recognize certain operating leases on the balance sheet as right-of-use assets and lease liabilities.