[Joonsup]

I'm wondering if anyone knows how the taxes are charged for leasing in california. Is the taxes charged on the depreciation only or do you also have to pay taxes on the cap cost reduction? I pick up my car sunday and I don't want any surprises. Thanks

[snohman]

Originally Posted by joonsup

I'm wondering if anyone knows how the taxes are charged for leasing in california. Is the taxes charged on the depreciation only or do you also have to pay taxes on the cap cost reduction? I pick up my car sunday and I don't want any surprises. Thanks

I believe you will pay taxes on any cap cost reduction you put down...

[stooken]

you mean up front taxes?

i dont think i paid anything? i just put the very minimum drive off down which was barely over $1k. only taxes i pay now are included in monthly payments.

[Joonsup]

Originally Posted by stooken

you mean up front taxes?

i dont think i paid anything? i just put the very minimum drive off down which was barely over $1k. only taxes i pay now are included in monthly payments.

So I'm assuming you put 0 down for cap cost reduction, so only taxes you pay are 8.25% of whatever your monthly payment is. But I think snohman is right that you have to pay taxes on your downpayment (separate from drive out costs).

[!Xoible]

Originally Posted by joonsup

So I'm assuming you put 0 down for cap cost reduction, so only taxes you pay are 8.25% of whatever your monthly payment is. But I think snohman is right that you have to pay taxes on your downpayment (separate from drive out costs).

if u put 0 down then all tax ur paying is on ur monthly payment.

[phantom330]

Originally Posted by joonsup

So I'm assuming you put 0 down for cap cost reduction, so only taxes you pay are 8.25% of whatever your monthly payment is. But I think snohman is right that you have to pay taxes on your downpayment (separate from drive out costs).

+1.........unless you put down a cap cost reduction the only charge for tax should be any taxable upfront fees, other than that just the tax based off your monthly payment.

[Joonsup]

I plan on putting a little downpayment down, so will the taxes on that have to be paid up front or can they be rolled into the monthly payment?

[wontonbomb]

Originally Posted by joonsup

I plan on putting a little downpayment down, so will the taxes on that have to be paid up front or can they be rolled into the monthly payment?

Why put anything down on a lease? The past two leases I've put $0. All I paid was 1st month, security deposit, license & registration. But to answer your question about taxes on cap cost reduction, I don't know

You should just spend that money on the BMW MSD program (multiple security deposits). For each additional security deposit you put down, it lowers your MF by 0.00007 (up to 7 MSDs, total of 0.00049 reduction).

I'm sure you read all the 411 about leases and as a reminder, if you happen to total the vehicle, you won't get that money back.

[stooken]

do the numbers even work out in your favor?

having to pay taxes on the down payment you put down vs. NOT putting anything down and just sticking with your current cap cost.

in the end, dont you pay the same amount? might as well hold onto that money and pay it over time. no point putting all that money down to reduce your monthly payment on a car you may or may not keep for the full lease term.

[phantom330]

Originally Posted by joonsup

I plan on putting a little downpayment down, so will the taxes on that have to be paid up front or can they be rolled into the monthly payment?

Tax on the cap cost reduction can be rolled in, there is a line for it on the contract, but it's not normal and doesn't make sense because then you'll be paying tax in your monthly payment on the tax you rolled in. So essentially you'll be paying tax on tax. I wouldn't put anything down if I were you. If you are wanting to put more $$ down do Mult SD, don't do a cap cost reduction.

[Joonsup]

All good things to consider. Thanks guys and wish me luck. I'm going in tomorrow after work to figure out the numbers

[Zoeb@WheelDude.com]

bump for joonsup

[stooken]

Originally Posted by Zoeb2s

bump for joonsup

:

[Joonsup]

gawd damn why'd you bump this old thread? lol jeezus

[!Xoible]

joonsup... u wanna assume my lease

[OC Guy]

Originally Posted by joonsup

So I'm assuming you put 0 down for cap cost reduction, so only taxes you pay are 8.25% of whatever your monthly payment is. But I think snohman is right that you have to pay taxes on your downpayment (separate from drive out costs).

Sales tax is not the same in every county.

[Joonsup]

FYI This post was before I took delivery of my car. Stupid Zoeb bumped it for no reason. lol. I already got my car end of Oct. Admin please lock or delete this thread.

[Zoeb@WheelDude.com]

Originally Posted by joonsup

FYI This post was before I took delivery of my car. Stupid Zoeb bumped it for no reason. lol. I already got my car end of Oct. Admin please lock or delete this thread.

don't hate.

[Joonsup]

Originally Posted by Zoeb2s

don't hate.

:s lap:

[stooken]

Originally Posted by Zoeb2s

don't hate.

[Driver72]

This is California, you are taxed on everything!!!
We have a lot of people here (and 5-8 million extra people here) that our taxes have to take care of.