Originally Posted by lllwlf
They're trying to pull a maneuver.--- They shouldn't be adding sales tax on top of the $104,175. Sales tax is paid on the lease payment and/or any cap cost reduction. Did they give you this in the contract, or over email?
I would guess that when they paper this deal (which you absolutely shouldn't do) they would show your purchase price as $110,400 and that 6K tax line would be much smaller, reflecting the 6% of the net caps you have listed -$2,200 and $750.
Originally Posted by Vic55
He could be living in what is called an "up front state" where tax is paid up front on either a purchase or lease. He will be able to advise better but there are states that require taxes on the full purchase price of a lease.
I'm not sure how DC works, but I ran my calc the way they apply sales tax in NJ - on each individual payment.
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