I am looking to trade in a vehicle I purchased for a lease. I know when trading in for a new purchase, there is a “tax break” for the new purchase.
Would this work out the same for a purchase trade to a lease?
If not, I am thinking it’s best to keep them separate…?
It depends on the state and can then even vary from dealership to dealership. In NJ, most of the time I have been able to use a trade-in to reduce tax on a lease. However, in a minority of cases, I’ve had dealerships refuse to account for it in this manner. I think the answer is somewhat grey – but it’s worth a shot until you are told otherwise.