Lease Transfer Tax Questions

Hi All,

Before I propose the question, I did search on the forum on this and it seems to be a bit of a gray area. When considering a lease takeover, how is sales tax calculated and what amount is typically looked at? Meaning, it is based on the remaining months + monthly lease? Does this vary from state to state?

Two examples:

  1. A transfer from outside of NY going to someone in NY.
  2. A lease transfer that occurs within NY state.

Just trying to understand what costs should be considered on the taxes piece. Thank you.

It’s going to vary…

I’m assuming you’re asking about NY since that’s what you tagged and those are your examples.

Transfer from outside NY will have sales tax assessed on remaining payments. 19 payments of 1000, you’ll owe sales tax on 19k.

Within NY state, it is the same. You are retaxed on remaining payments even if they include sales tax.

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