Texas Sales Tax for going from Lease to Lease w/out tax credit

[akito]

Hi,

In need of clarification, since in Texas we are charged sales tax upfront.

Does the trade-in allowance tax benefit apply when going from lease to lease?
ie: Leasing $36K car, trade-in allowance of $26K; does that mean pay tax on only $10K or the full $36K?

I know that if there is tax credit available then remove the trade-in from the equation for a greater benefit.

Thank you!

[IAC]

Lender dependent but switching brands typically breaks that.

You pay tax on the difference.

[akito]

Thanks! Ugh, that’s what I thought. A local Honda dealer is stating otherwise; going from Honda to Honda.

[IAC]

Really depends on lender rules and what bank they’re getting the lease funded from. I forgot to add that with brands that aren’t always captive dependent can also break the continuity – No credit to capture means no lender tax credit unless they’re offering it on that model, or across the board.