[flaggrad00]

I am hoping someone can help me out with this, I have contacted BMW financial services and the Maryland DMV, and no one seems to be able to give me a clear answer. What are the tax implications of transferring a lease from Virginia to Maryland. Both states tax on the sale price up front, but Maryland taxes at a higher rate. I have an interested party, and he understandably doesn't want to be stuck with a ~$2,000 on a car he leasing for the next 15 months.

 

[Ninong]

Are we talking about an open lease that you have right now with BMW Financial Services that someone wants to take over from you? If so, BMW Financial Services will handle ALL of those details for you and the new person taking over the account.

One way to find out for sure exactly what it means is for you guys to apply to BMWFS for him to take over your lease. They have to figure out what, if anything, will be owed to the new state. That's not your responsibility to figure out, it's their job because they own the car and they're responsible for taxes.



P.S. -- You can't go by what someone on the phone told you because maybe you weren't talking to be person responsible for doing this and maybe they don't have all the details at their fingertips for all 50 states.

 

[flaggrad00]

Are we talking about an open lease that you have right now with BMW Financial Services that someone wants to take over from you? If so, BMW Financial Services will handle ALL of those details for you and the new person taking over the account.

One way to find out for sure exactly what it means is for you guys to apply to BMWFS for him to take over your lease. They have to figure out what, if anything, will be owed to the new state. That's not your responsibility to figure out, it's their job because they own the car and they're responsible for taxes.



P.S. -- You can't go by what someone on the phone told you because maybe you weren't talking to be person responsible for doing this and maybe they don't have all the details at their fingertips for all 50 states.

Ninong, thanks for the reply (as always),

Yes I am the current lessee in Virginia and and someone from Maryland is thinking about taking it over.

The problem is he is aware there may be a significant tax implication and doesn't want to pay the transfer fee only to find out Maryland is going to charge him ~$1,800 in taxes for a 15 month lease term.

I have talked to BMW financial and they can only give a hard figure if the car is set to be registered.

 

[Ninong]

I have talked to BMW financial and they can only give a hard figure if the car is set to be registered.

Tell them to pretend the car is set to be registered and tell you what will happen because you want this guy to take over your lease and he won't pay the transfer fee if he doesn't know this ahead of time. If the person you're talking to isn't helpful, ask to speak to a supervisor.