Cap Cost reduction taxed in CA, and when?

I’m looking at the current lease deal for the BZ4x, and it includes this language: “$16,250 cash from TMS must be applied as a capitalized cost reduction (down payment) that is excluded from due at signing; no cash back option.”

My question is if that $16,250 will be taxed in CA, and if so, do I pay it as part of the drive-off, or is it added to the monthly payment as the other tax is here?

You can pay that tax upfront or have it capitalized in. Up to you.

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Yes it’s taxed in CA

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