Nah, happens to me more often that I care to admit.
Not just CA. You recently learned that VA does the same.
1 Like
Right, a pattern to be sure. 
@lexusfan - stop wasting time and just get a better deal with @Jeff_BeachCitiesAuto. Take a cheap flight to SoCal and drive the new car back and unload the Murano private party or to Carmax, etc.
That is sound advice, my friend. I am working with @Jeff_BeachCitiesAuto too. Just thinking thro’ this vs a couple of other models.
1 Like
Sounds good. In the end it can all be about the value of your time when you get down to the small dollars and cents.
Good luck!
1 Like
I did? I believe we were discussing CA, not VA. Perhaps I’ve forgotten. Would you kindly enlighten me on where I supposedly learned this, please?
4 days was a very long time ago.
1 Like
That discussion centered on the taxability of equity in a trade used as a CCR. Does VA tax equity used as a CCR? The thread to which you refer discussed sales tax, generally. …
To which you responded with… $66,000 adj cap cost + $18,000 down at 4.15% tax rate gets close to their sales tax. Don’t know the exact dealer fees and registration, but $2,092 line 16 = $995 acq fee + $950 dealer fees + $147 reg upfront and not taxed.
Yes, as far as I know. Equity is still cash downpayment, no?
My response showed how the dealer probably calculated his VA sales tax.
1 Like
If we can make a distinction between “credit” and “cash down”… It seems that Ohio does make that distinction. Under Ohio law, equity is not taxable and, I believe that is the case in most states. Ohio law provides, in part…
Apparently, VA views equity as cash down and, therefore, taxable. Strictly speaking, I don’t believe that equity is cash down. It’s more like an exchange for like kind and hence, a credit.
Exactly. I agree. There was no discussion about equity.
What I learned from you regarding VA sales tax is that the tax rate is 4.15% and not 7% that the OP had provided.
You would be surprised at the number of people who are uncomfortable flying a short distance and driving a car back 
1 Like
Anyone figured out lease buyout price ? What sort of advantage we getting overall by leasing and buying out from LFS.
Yes, see my post above.
The main advantage of leasing is the 7500 rebate savings. My understanding is that it is available only to lessees, not buyers. Supposedly, the inflation reduction act treats leased EV’s as commercial vehicles and, apparently, all commercial EV’s qualify for this rebate.
When you purchase the vehicle, you are claiming a tax credit under section 30D of the IRA. 30D has a lot of restrictions, so very few vehicles actually qualify, and even if the vehicle qualifies, there are personal qualifications based on income, tax liability, etc.
When the lessor purchases the vehicle for the purpose of leasing it out (or any number of other viable commercial purposes), they claim a tax credit under section 45W of the IRA. This is a completely different tax credit with completely different rules. It is much more broadly applicable and does not have any qualifications based on the lessee’s income, tax liability, etc.
The lessor has no obligation to pass on any of the value of their tax credit, but most do. If they pass it on as a cap cost reduction, it is an incentive, like any other.
1 Like
Thanks for clarifying. I was aware that the lessor is not obligated to pass the credit or any portion thereof to the lessee. When the credit is treated as a CCR, it is taxable to the lessee. Are there any circumstances in which the 7500 is not taxable? Perhaps when it is used to pay upfront taxable (acq, doc fees) and non-taxable fees (taxes, certain gov fees)? Or maybe it depends upon the state.
It would be taxed like any other normal incentive. So will depend on state rules.
1 Like
Please don’t go there or somehow every deal will be discussed as if Ohio taxes apply.
Personally, I treat the $7500 as taxable, unless it’s a state where incentives aren’t taxed at all. Yah, there will be situations where some small chunk of the incentive doesn’t get taxed because it was applied to the tire fee, but I’d rather estimate slightly high.
Hi Lexusfan, I’m in Norcal also, did you end up with a 2024 RX 450h+? May I ask what you finally end up doing and who you worked with? Did you lease then buyout a month later?.. I would really appreciate any feedback! I’m also looking at the RX 450h+, was looking at the RX 350h, but with the $7500 cash rebate when you lease it makes sense to go for the RX 450h+.
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.