Many thanks to all in this community for the wealth of information that is available here! Has helped me so much in getting me going towards my first BMW.
When the deal was made, I told the dealership that I don't want to apply any of the money that they are giving me for the trade-in towards the sale price. They agreed; they also told me that I am still eligible to receive the sales tax break due to the trade-in, and when they calculated the monthly lease amount, it was smaller than what I got using lease calculators (with the full sale price as the tax basis).
I am wondering whether what they said is correct. I would tend to think that any cash-back that I get from the trade-in cannot be used to reduce the sales tax.
On the New Jersey website, I couldn't find anything that addresses cash-back on a trade-in. While searching the web, I came across some documentation from the state of Illinois that specifically identified this scenario and pointed out that any cash-back on the trade-in cannot be used to reduce the taxable amount.
Anyone come across this situation? If so, in what state and how was it handled?
When the deal was made, I told the dealership that I don't want to apply any of the money that they are giving me for the trade-in towards the sale price. They agreed; they also told me that I am still eligible to receive the sales tax break due to the trade-in, and when they calculated the monthly lease amount, it was smaller than what I got using lease calculators (with the full sale price as the tax basis).
I am wondering whether what they said is correct. I would tend to think that any cash-back that I get from the trade-in cannot be used to reduce the sales tax.
On the New Jersey website, I couldn't find anything that addresses cash-back on a trade-in. While searching the web, I came across some documentation from the state of Illinois that specifically identified this scenario and pointed out that any cash-back on the trade-in cannot be used to reduce the taxable amount.
Anyone come across this situation? If so, in what state and how was it handled?
Question about trade-in sales tax allowance and cash-back
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