CA 10 day sales tax exemption question

[maxiedaniels]

I know in CA, if you buyout a lease and sell the car within ten days, you avoid paying sales tax. Until now, I haven’t had to worry about that because I’ve been able to transfer a lease to a used car dealer. But now, manufacturers have disallowed that.

So, my question is, if I buyout the lease and sell to say, CarMax, how do I make sure I don’t pay sales tax? Can that happen quickly enough?

[mllcb42]

Third Party Lease Buyout

I recently went through a third-party lease buyout in California. I often see the question on how this is done so I wrote a quick document of my experience: I think the main one I hear is how to avoid paying sales tax twice when selling to a private party. This can be avoided (in CA) by (a) selling you lease within 10 days of acquiring the title from the lessor (b) applying and being approved for a CDTFA-111 from the CDTFA. Note, if you sell to a dealer, the leasing company transfer the ti…

[Kctham18]

Has been discussed at length

California 10 day tax exempt For lease buyout

Hi I have looked thoroughly here and this topic has not been discussed. In CA, you are allowed to payoff your leased car in order to resell it without paying taxes on the payoff IF you can sell it back and to a third party which would need to register the car within ten days of the original leasee recieving the title form the lessor company. BUT YOU HAVE TO MAKE SURE THE CAR IS TRANSFERED TO THE NEW ONWER WITHIN 10 days. Now is the tricky part. What if I payoff the car and sell it to s deal…

[TypeSH]

If you have to get it re-titled into your name, this will not work.