[The X Men]

I have a question for someone who is leasing their car. I am try to figure out how to compute the sales tax credit on a trade in, I live in a state where trade in credit is allow and the sales tax is pay on the monthly basis based on monthly payment amount. If my leased value is less than my trade in value, am I correct to say that I would not have to pay any sales tax with my monthly payment?

Thanks

[skw]

I'm also in Taxachusetts and if you've been here long enough, you know there is no way this state will let you get away w/o paying sales tax somewhere. While my BMW was purchased, I lease my Hondas and Acuras because of the trade in value they hold.

So when you trade in a vehicle on a purchasing transaction (I think this is where the trade in credit you're referring to comes in, correct me if I'm wrong), you pay sales tax on the difference. So, using generic numbers here, you walk into the dealer and just buy a $20,000 car, when you register it, you pay 6.25% of that $20,000 as sales tax to the registry. Now let's say you're doing a trade, you own your car outright, and the dealer is giving you $5,000 for it and the new car is $20,000, at the time you register the new car, you only pay sales tax on $15,000. On a lease however, the value of your trade nor the price of the new car matters at all. On a lease, here in Mass, the sales tax is paid monthly and is calculated as 6.25% of whatever your monthly lease payment is. And in addition, you still have an annual excise tax payment to whichever city/town you're in. Usually the town send the excise tax bill to the leasing company. With Honda/Acura Financial, I don't get the actual bill but it shows up on my statement and I send it in as an extra payment. They in turn send it back to the town and I just keep a record of it so as to write it off on my taxes.

[The X Men]

Thanks SKW, so no trade in sales tax credit on leased car in Massachusetts.

[WCH]

Yep - skw is correct.

[The X Men]

Damn, I am moving to New Hampshire