I’m talking to a Hyundai dealer about an Elantra N lease (surprisingly decent now) and he said that I’ll need to pay tax on not only the monthly payment, but that I need to pay tax on my down payment as well. I’ve never heard of this at all. Am I missing something??

That’s not what I was suggesting. I’m confused why I have to pay tax against my own money.

But that is what you are suggesting. You are saying that a down payment of the entire amount would be tax free. Why would it change depending on the amount down? Of course you pay tax on a down payment. We always pay tax on our own money. Hopefully you don’t pay tax on other peoples’ money. That’s …

They are confusing things. You pay tax on the car and the downpayment reduces the total. The downpayment itself is not taxed, the car is Now the monthly payment, that is taxed and taxed separately

That didn’t make any sense at all.

Man sometimes some of you folks just dont like to help a person out. You make comments but never address the specific question asked by the OP. Does this provide some form of gratification? What trigger makes answering the question the op asked difficult without snide comments. You are not payin…

I sometimes try to lead the horse to water rather than give it a sippy cup. In my extensive teaching experience, that often nets a better understanding. Nothing snide about it other than what you are reading into it.

wasnt actually referring to you :slight_smile:

[image] mariob33: You are not paying tax on your own money. What your paying tax on is the full value of the car prior to downpayment This varies significantly by state. Let’s be specific for a moment… In monthly tax states, tax is due when the payment is applied… that means that if you mak…

Tax on my down payment?

Ask the Hackrs

28firefighter September 4, 2022, 5:07pm 20

Use this thread. Gave me a baseline to work with.

Also, most of us here will tell you a big downpayment on a lease is a very bad idea. On a purchase the calculus is different.

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