Trying to determine if in Colorado the $5,350 is taxable or not . . . ? I have a quote in-hand that effectively breaks down as follows, each line being called “deal_rebate”:
When using LH calculator, what do I input in taxed vs untaxed?
The $5350 is taxed.
And so is the $14,500 for what it’s worth. You’re looking at Ioniq5 based on those numbers; the $19,850 in rebates are taxed.
Can it make sense to tell the dealer to remove the state credit and instead just file for it when you do your state taxes? Particularly if you do a single pay lease?
If that’s what a client wants to do, a dealer should be able to accommodate that request. With that said, they’re getting $5350 if passed through the dealer and only $5000 if they claim it on their taxes.
Now, with Denver tax (on the high side at 8.81%), you’re paying $471 in tax but getting $350 more so the net is -$121. A customer has to decide if it’s worth filing for the whole amount later or just taking the $121 hit to have it built into the deal. Another thing to factor is the extra interest they’d pay on the lease since there’s a lower cap cost reduction which further reduces the $121 advantage of claiming it later.
Youre not though, since you still have to pay tax on the $5350 worth of lease you pay for.
The $5350 isn’t taxable because it is an incentive, it is taxable because it’s a payment being made on your behalf. You have to pay the tax on that $5350 worth of utility regardless.
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