Quote:
Originally Posted by Mako
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.
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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.