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BMW 5-Series (G30) Forum G30 Pricing, Ordering, Tracking, European Delivery TEXAS lease return and tax savings

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      03-27-2017, 03:49 PM   #1
dantm3
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TEXAS lease return and tax savings

I am wondering if someone has ever returned a lease and leased another vehicle through BMWFS in Texas. According to my CA he said that if I return my wife's 5 series that I would get a tax credit for the residual on the new purchase. Basically if I leased a new 530i at 60k, and residual on current car is 25k, I only pay taxes on the difference of 35k on the new lease. Has anyone ever done this? Any feedback would be appreciated as we are deciding on leasing a new 5 series, or possibly getting some other brand, but this could save us about half the taxes if true and may be worth it. Remember Texas is a full tax state where you pay taxes on purchase price and not payment.
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      03-27-2017, 04:14 PM   #2
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Originally Posted by dantm3 View Post
I am wondering if someone has ever returned a lease and leased another vehicle through BMWFS in Texas. According to my CA he said that if I return my wife's 5 series that I would get a tax credit for the residual on the new purchase. Basically if I leased a new 530i at 60k, and residual on current car is 25k, I only pay taxes on the difference of 35k on the new lease. Has anyone ever done this? Any feedback would be appreciated as we are deciding on leasing a new 5 series, or possibly getting some other brand, but this could save us about half the taxes if true and may be worth it. Remember Texas is a full tax state where you pay taxes on purchase price and not payment.
Yes this is the case
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      03-27-2017, 07:29 PM   #3
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Originally Posted by dantm3 View Post
I am wondering if someone has ever returned a lease and leased another vehicle through BMWFS in Texas. According to my CA he said that if I return my wife's 5 series that I would get a tax credit for the residual on the new purchase. Basically if I leased a new 530i at 60k, and residual on current car is 25k, I only pay taxes on the difference of 35k on the new lease. Has anyone ever done this? Any feedback would be appreciated as we are deciding on leasing a new 5 series, or possibly getting some other brand, but this could save us about half the taxes if true and may be worth it. Remember Texas is a full tax state where you pay taxes on purchase price and not payment.
Yes this is the case
Awesome Man, thanks for the reply. That will save me about 1600 in taxes which drops payment 50 bucks
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      04-28-2017, 10:58 PM   #4
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does this also work if you're on owner's choice?
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328i -> 535i -> X5 -> 540i -> Lexus LC500
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      04-30-2017, 08:33 AM   #5
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does this also work if you're on owner's choice?
I believe you are the owner and if trading in a car, you should get the tax credit towards your new purchase. My Dealer did say though that if you lease you can lease again, and owners choice allows you to do owners choice, but you can't switch to a different purchase style... Have no clue why though
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      05-18-2017, 09:45 AM   #6
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Yes this is the case
is this only in TX or in every state?
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      05-20-2017, 11:18 AM   #7
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Only TX and one other--don't remember which other
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