Which is entirely what you’ve been advocating
And of course the lease co won’t ‘unwind it’ … there is nothing to unwind.
It is up to each individual person whether he or she chooses to pay the tax up-front. I like to mitigate my risk and also not be out a ton of money at signing. I also, knock on wood, don’t plan on going anywhere or leaving NY State, so I’m good.
But especially with the roads in NY and NJ and the way people drive, the risk of losing the money isn’t worth it to me. One bad driver in a snowstorm, and your money is 
.
The other questions that I answered pertain to a lot of people, since people here are looking for deals, which may entail going to a dealer in another state. I’m simply informing people what may be taxed, when the other state shouldn’t tax them, etc.
Ap can I just sum this up? If I roll it in I will be paying tax on tax and be subject to the mf?
Most lease docs state “capitalized tax” or something of that nature. With some know-how, it may be possible to unwind in some states, but again, NY is clearly unrelenting with that. So it’s better to roll it into the payments for those who think they may someday go elsewhere. You also then have proof of tax paid. I’d rather pay 50% of the NY tax than pay it up-front and then be subjected to another state’s tax. If you’re desperate, you can always figure out a termination option or buy out, then sell the car.
Subject to the MF, absolutely, tax on tax, not exactly. Search for my earlier post on this that @Ursus referenced.
Have to disagree, @AP919. If tax is capped, you will definitely be paying tax on tax. This is not only supported by my post above, but Pub 839 confirms the same. See example 9 at P. 16. Lines 1 thru 7 captures tax on tax; lines 8-13 captures interest on tax. If you’re interested, see my posted image doc above where I discuss this in some detail.
I wish they would have done an example that just discusses those instances where the tax is capped without a loan (i.e., fund provider is funding the adjusted cap which includes tax… no need for dealer to lend the lessee the tax… tax is then paid to NY upfront even though it financed in the lease which is exactly what occurred with the Glen Cove Volvo lease a few years ago).
Thanks for all the information you provided. It’s awesome and I learned a few things!
ADDENDUM…. Let’s put this tax on tax issue to bed. Below is a very compelling argument that definitively proves that tax is levied on tax when the tax is capped in a NY lease…
Pub 839, Pub 839, Lines 1-7, at P.16 calculates the total tax as follows…
Total Tax = [.08/(1-.08)] x 18000 = 1565
The 1565 total tax includes the additional tax on tax which amounts to 125. Here’s why…
**We have tax on the total payments of 18000... .08 x 18000 = 1440**
**PLUS tax on the total tax................... .08 x 1565 = 125**
**TOTAL TAX.............................................. = 1565**
It’s impossible.
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Yonkers has an additional 1.5%
I guess I wasn’t approved, since I don’t see it, unless I’m missing it? Hahaha.
He’s busy. I sent one in for bmw a couple weeks ago now, and that’s still not up yet either 
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Hi!
I’ve read some of your posts, and they’re thorough and thought maybe you can help me. I’m trying to get out of my lease via doing a third-party buyout in which I will find a buyer to purchase the car directly or indirectly from HMFUSA (Hyundai). I’m in Nassau County, NY.
If i buy the car from HMFUSA, and then sell to someone is there a 10-day window to transfer to register the title under new owner so that I can avoid paying sales-tax twice (once when I buy from HMFUSA, and again paid by my buyer) ?
OK hello…
So question is this:
I buy or take over a lease from someone in another state…what is MY tax liability on the vehicle?..is it the total of my monthly payments? the total of the vehicle? or is it something else? and the LeaseHackr calculator says on the bottom left with New York in () that tax is levied upfront in new york…but this is a confusing statement cause so many posts tell us NOT to pay the taxes upfront…TIA for any info you may shed some light on…
Where do you live. ZIP? Where does the other person live. Changes answers.
You can roll the taxes into the monthly, imagine tax goes into monthly just like a fee, reverse of downpayment.
NY tax is always levied upfront. You can pay it out of pocket or ask the bank to roll it into the monthly payments (in which case you’re paying rent charge on that amount at whatever the MF is).
Yes… and not just from another state, even if you take over an existing lease in NY with prior tax paid upfront for the whole lease.
wow did not realize that…thanks
i had been thinking of assuming a lease from michigan…and i live in 10306
and understood…thanks
You would pay tax upfront on remaining lease cost. Months * remaining payments without MI tax.
Cannot roll tax in after the fact with takeover.
so to clarify…MI tax is not included but other states may charge it?..
this one case is $500/m (x) 12month remaining=$6000…so therefor i would pay NYC sales tax(8.875%) of $532.50 but no other …if thats correct then i got it
and thx again
and lastly are MSD interest accruing or not…
Yes depends if the tax is charged upfront (MN, OH, NJ, NY, TX, MD, VA etc), then financed, in to the payment the stage won’t refund tax (NJ claims to but they don’t).
NJ doesn’t charge tax on in state transfer iirc, but does for OOS to NJ, NY charges tax on remaining lease payment even for in state (monthly states get their tax removed as that isn’t assessed upfront).
This is all of memory so if I’m wrong don’t hold me responsible and anyone else please correct me.
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No, they are not. The point is that MSD’s lower the MF, so that’s the “interest” you are gaining. Otherwise it’d be double-dipping if you have a lower MF and accruing interest 
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