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 they effectively double tax, then it would be bad to capitalize except maybe for a gap scenario?
Also does the capitalized taxes get rolled into the residual if you buyout early? (eg you’d have to pay the adjusted residual plus the full amount of capitalized taxes/fees? Or?)