I have a trade in that is financed in Texas worth about 30k. How exactly does this effect the sales tax calculation if I’m trading in to get a lease? I think I get a break on the sales tax, but not positive.
You don’t get tax credit on lease.
well that was easy… thank you
Unless the leasing companies allow tax credit, of course
I thought if you are trading a car into a dealer that you own or traditionally financed then you would only pay the sales tax on the difference between the value of the 2 vehicles (In Texas)? I know if you are trading a leased vehicle in Texas then you do not receive any tax benefit. Am I incorrect? If I understand OP’s question he owns or has a traditional note on the vehicle he is trading.
Different states do this differently. Some don’t at all.
I made a correction to my statement. Just for clarity.