[f30nynj]

I live in central Jersey and have been a little confused about the tax on lease cars. Some dealers have calculated tax on the net cap cost and give the option to roll into payments or pay upfront. But reading some online material, i see that the tax is only paid on the depreciation.

For example, if net cap cost(seling price): $40,000 and residual is $30,000. Would the tax be calculated on $40k or the $10K(depreciation)?

I'd really appreciate if anyone can answer this. Again this question is specific to NJ.

Thanks!!