[ultamte]

I have a question regarding taxes on lease takeover that I was hoping a resident of Virginia could help answer.

I am considering taking over a short term lease (the lease on my 335i xDrive is up in Feb '18) but want to know how taxes are handled. In VA, the state taxes (now 4.32%) were required to be paid upfront in the total cap cost (they are NOT paid on the monthly payment).

If I assume a lease from another state, will I be required to pay taxes on the original sale price, current value, or something else? I have researched online but can not find a specific answer. Some have suggested if I can prove how much the original leasee has paid in tax, I can deduct that from what I would owe.

What I'm really hoping is someone from VA who has actually done a lease assumption/take over/Swap and could share their experience w/ regard to VA tax. Because VA appears to be one of only a few states that requires the entire tax upfront in the calculation - I'm worried it will make a lease take over not financially viable.

Thank you for any help!
Chad aka ultamte.

[ultamte]

Anyone...

I thought about posting in the classifieds since that is where people swap leases - but wasn't sure that was 'appropriate' or not.

any help appreciated.
thanks.

[John in VA]

I've never leased before, but can't a finance dept. rep at a VA dealership provide this info?
Good luck!

[SBM1206]

You can check with BMWFS. They should know for sure.

In any case taking a lease at such a late stage may not be possible and even if it is you may get stuck with end of lease fees, worn tires, disposition fee, etc.

[ultamte]

Originally Posted by SBM1206

You can check with BMWFS. They should know for sure.

In any case taking a lease at such a late stage may not be possible and even if it is you may get stuck with end of lease fees, worn tires, disposition fee, etc.

Thanks - I plan to check with BMWFS on Monday - but I've read others have tried and sometimes gotten different answers.

The lease I'm looking at has 15 months remaining (so over the min 6 month req), the tires were just replaced, and I plan to get into another lease when this would run out so hoping the dealer would waive the disposition fee to get me into another.