Sales tax at lease turn in

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I live in Maryland, where sales tax is calculated on the total sales amount of the vehicle NOT the monthly payment. What happens tax wise when the lease ends? In the “purchasing” world, if I trade in a $25,000 car on a $40,000, I’d only pay sales tax on the $15,000 difference between the two. Does anything like that exist when a lease is turned in?

Let me Google that for you - answer

Of course this only applies if you buy lease out and trade it in. You can’t do this if you don’t have equity cause then you would need to bring money to the table for buy out.

You don’t get anything when the lease ends, just like in VA (which doesn’t even have tax credit on trade-in)

I read the link I posted to say you probably could get a tax credit. If dealer buys out your car, you get tax credit for delta between RV and price paid. Of course you need equity at turn in to do this.

This would be a bad idea normally since to get tax credit that money becomes has to become a down payment, dealer can’t write you a check for it. So unless it’s a one pay lease, the small tax savings wouldn’t be worth, at least to me, putting money down for car.

Edit - being a Virginian I’m rusty on tax credits. Do you get tax credit for full value of turn in or just on equity you have?

Yes, that’s the key. I think he asked about return only.
On trade in we get nothing in VA.

Wow, thanks for the interesting fact that you only pay for the difference! It is very interesting. As for the tax- I think something similar is happening with rent. I read an article about this in December, it’s worth finding it again and remembering it. I had a case where at the end of the month I received a huge tax check for my car for $ 30,000. However, I counted on https://taxfyle.com/sales-tax-calculator that the tax should be quite different. As it turned out, the service gave me the wrong check and tried to cheat me. I sued them and they paid me compensation. Therefore, you need to be careful and careful with this.