In California, do you end up double paying taxes on the upfront taxes on taxable incentives if you capitalize them into the monthly lease payment instead of paying at drive-off? How about the registration fees? Eg if they take your entire monthly payment and apply sales tax, then yes they are? If …

[image] CarHax: Eg if they take your entire monthly payment and apply sales tax, then yes they are? If they effectively double tax, then it would be bad to capitalize except maybe for a gap scenario? Yes. Not only this, but you’re also paying interest on that amount rolled in and then paying…

California Double Taxes? - Zero Drive Off / Capitalized Taxes on Lease

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jeisensc May 30, 2021, 2:00am 7

Take a look at:

Which is @dukez bolt

Right now, cvrp and cvap are not an issue. But yes, there is a button in the calculator to choose to capitalize taxes. If you do, you will pay more rent because of them.