Selling Lease Buyout CA Sales Tax

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California 10 day tax exempt For lease buyout

Hi I have looked thoroughly here and this topic has not been discussed. In CA, you are allowed to payoff your leased car in order to resell it without paying taxes on the payoff IF you can sell it back and to a third party which would need to register the car within ten days of the original leasee recieving the title form the lessor company. BUT YOU HAVE TO MAKE SURE THE CAR IS TRANSFERED TO THE NEW ONWER WITHIN 10 days. Now is the tricky part. What if I payoff the car and sell it to s deal…

tl;dr: You have to get the released title from HMF, reregister in your name & pay sales tax, then the 10-day timer starts - after which you can sell to your friend and apply for the sales tax to be refunded. Well documented if you search here.