So did he let u borrow his plate ?
Have you seen the amount of BMWs available on swapalease recently ?
They are down from 1300+ in Jan/ Feb to about 350 cars (less cause many are marked as Sold pending removal).
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Hi guys Iâm in the process of a lease takeover for a m340i Stage 2 was completed on my end waiting for transferor to finish what is stage 3
Read the BMW FS instructions email.
Question for anyone whoâs taken over an out of state lease IN to NYS (or anyone who can help!) âŚ
Will BMWFS provide all the documents needed to register the leased vehicle @ the NYSDMV? NY has a lengthy list of documents required and I hope BMWFS sends everything accordingly based on where the new lease will be located.
Also: Does BMWFS make you pay the NYS sales tax during the assumption process as a lump-sum or do they add it onto the monthly lease payments?
Will appreciate any insight. Thanks.
Will BMWFS provide all the documents needed to register the leased vehicle @ the NYSDMV?
Yes BMWFS will send all the necessary documentation to register the lease vehicle to YOU specifically after Stage 3. You then have to get yourself over to the NY DMV to register the vehicle.
Does BMWFS make you pay the NYS sales tax during the assumption process as a lump-sum or do they add it onto the monthly lease payments?
Negative. The sales tax on the outstanding lease payments are not capitalized into the lease. You owe it lump sum and upfront. In my case I was billed by BMWFS directly, but I have also heard folks paying at the DMV.
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@sfm24 Thank you! Really helpful and made me relieved ⌠NYSDMV has a bit of a lenghty requirement list and I was worried if BMWFS will know to send all that. But this ainât their first rodeo so thereâs hope lol.
Hey guys how long are bmw lease transfers taking now a days in 2023?
I have 8/9 months in my lease right now
Iâm aware that you have to do so before last 6 months
has anyone been successful in a lease assumption under 6 months remaining? I have 3 left and it took a bit to find a person who was willing to assume my lease and they also want to purchase my car. Couldnât I just i extend my lease 3 months to meet that 6 month then have it assumed? Havenât asked this yet and was just going to extend and see if it worked as the extension is pro-rated so I can always get that cancelled if needed.
Secondly, BMW dealership told me that I would have to call BMW financial but they also started that if he wanted to purchase my BMW I first would have to payoff the bmw then do the transaction private sale. This seems like an unnecessary step as they would get a guaranteed sale if they let him purchase the BMW and assume my lease and payoff under the same terms. Itâs not like they profit from taxes as both would have to be paid from my sale and his. There would be zero profit in this transaction for me, only BMW.
BMW will only do a 2 month lease extension with one extension at a time. After the 2 extensions, they will only do another 4 month extension with proof of a new bmw vehicle order which is pending build and delivery.
For your second part about friend buying it out, I would call BMWFS and check if they allow friends and family lease buy out.
For current owner buyout, BMW now requires leasee to go through its local dealership to process buyout. It requires a vehicle inspection (just a formality), odometer disclosure signing and dmv paperwork.
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Got it figured out. The person is going to pay BMW finance and they issue the title to me via overnight delivery. Once recieved we meet at DMV office and i gift him the car for $0 to avoid him paying tax again on the car.
I am getting $0 in this transaction and BMW gets paid what they wanted from my payoff.
10characters
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DMV and your state taxation is going to have a field day with both of you. Outside of family transfers, this will get absolutely grilled. Allow me to rephrase, itâs tax fraud.
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No its not. I called BMW Financial and talked to them. This is the exact instructions they gave me and also reconfirmed with my attorney. The person purchasing the car is paying in cash and the car will hold no lien. You can gift a car in Ohio it just involved a title transfer (BMW form 3774) and bill of sale stating gift for $0.00
Youâre more than welcome to look it up, quick google search will easily confirm as well. Clearly some lease hackers donât go farther in knowledge past financing things.
Should probably check and see if the person receiving the gift will have to claim the value of the vehicle as income on their 2024 tax return. But what the hell do i know
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All the prior context may have convoluted the conversation with the BMW dealership. Itâs really quite simple if you never mention transfers and all that jazz. The dealership can buy the car from BMWFS, ending the lease with your consent, and immediately sell the car to your friend.
Itâs really quite simple if you keep it that way.
Couple things you may be overlooking:
- BMW doesnât issue titles. They will send you their title which will name you as the buyer. Are you saying the state of Ohio doesnât care if a title assigned to person X is immediately registered to person Y?
Technically you donât have right to sell or gift the car until you own it. Owning means a new title certificate was issued by the state in your name.
- You donât have to make a profit to fail the gift test. You donât necessarily have to receive cash either. The buyer is paying off your debt. Some form of value is being exchanged.
If you took something you owned outright and gave it away in exchange for nothing, that would be a gift.
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Yeah you could be correct on the gift part, Iâll ask my CPA since theyâre probably more informed than my attorney who doesnât specialize in taxes nor does BMW support.
According to the Internal Revenue Service (IRS), a gift tax is assessed on âthe transfer of property by one individual to another while receiving nothing, or less than full value, in return.â While all givers must disclose gifts over a certain amount, the good news is that most people will never need to pay the tax.
I wouldnât necessarily be committing any tax fraud as the tax is being paid by the individual through the payout, just eliminating paying tax twice due to BMW not just allowing this person to get the car directly for the same exact payout I would be paying (residual, tax, balance). This just creates extra steps they could easily do.
From what I found online:
As of January 2023, gift tax rules apply if the vehicleâs fair market value is over $17,000. Gifts exceeding the $17,000 annual exclusion count against your lifetime exclusion, which currently is $12.92 million.
Letâs say you gift a car worth $25,000 to your cousin. The extra $8,000 ($25,000 â $17,000) counts toward your lifetime exclusion. Youâll need to file a gift tax return even though you wonât owe taxes until you exceed the lifetime gift threshold. Taxes can be tricky, so we recommend consulting your tax professional when youâre thinking about gifting a car.
In most cases, you can give someone a car, and the recipient is not responsible for a tax on the vehicleâs value like they would if they purchased the automobile.
General rule: If you have a seemingly obvious scenario with an obvious answer that you are trying to justify by going back over basic definitions to look for a technicality, whatever youâre trying to do is not legitimate.
Keep it simple, are you really gifting someone a car, or are you trying to buy your car and re-sell it to someone and avoid double taxation?
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Do yourself a favor and listen to people like @IAC_Scott, your CPA, your DMV, your attorney and BMWFS. Do yourself another favor and do not listen to the guy that has apparently owned 1 or 2 vehicles in his entire life and spends his day on a site dedicated to leasing telling people not to lease.
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Itâs tax fraud to avoid double taxation. Any CPA worth their salt would tell you that. YOU are buying the car and the title will be in your name. It is not a gift as the end user gave you consideration. Will you get away with it? Maybe. Is it tax fraud? Yes.
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