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      04-06-2015, 05:33 PM   #128
OneRib
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Drives: 2015 AY M3
Join Date: Mar 2013
Location: PA

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Quote:
Originally Posted by Mako View Post
I noticed lots of people saying the only thing you should put down on a lease is the MSD and first payment, roll everything else in.

I think this might depend on what State you live in though, in Illinois for instance the new tax law taxes a lease on the down payment plus monthly payments. So I read this as "fees" like acquisition fee, doc fees, DMV fees are not a "deposit" so if paid up front there should be no tax on them (7% for me) but if I roll them into the lease, then I would be charged 7% tax on them! seems silly to roll something in and have to pay taxes because of that, other states might be different.
That is exactly correct and why most advocate paying your fees up front and also why MSDs are popular. MSDs are not taxed as a down payment, so Illinois would not touch that money. It also isn't income when you get it back.
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