Sales Tax on Lease Buyout

By | November 2, 2011

A sales tax on lease buyout document is one which calculates the amount of sales tax to be added to the residual value when a lessee decides to buy out the lease for an apartment or an object like a car. Often car lease buyouts are extremely common, and the amount that the lessee has to pay to effect the buyout is called the residual value. Sales tax is calculated on this residual value.

Sample Sales Tax on Lease Buyout:

The following document states the sales tax to be paid on the lease buyout effected by Mr. Brain Cummings [henceforth referred to as the lessor] and Mr. John Roe [henceforth referred to as the lessee]. The lessee paid a depreciatory amount of 200,000USD on a leased car [model Austin 3949, License Plate Number: US26347]. He paid monthly car rentals of 1000USD every month to the lessor, for a period of 2 years. The lease contract ended in December 2011, and thus, the residual amount which the lessee has to pay to the lessor for effecting a lease buyout is 300,000USD. The sales tax to be added on this residual value is to be calculated at the rate of 10%, and thus the final lease buyout amount is 330,000.

All terms and conditions governing this lease buyout are to be carefully read and understood. In case of any contention, the matter shall be referred to the Sessions Court of New York.

Signature of lessor: _______________________

Signature of lessee: _______________________

Signature of advocate: ____________________

Leave a Reply

Your email address will not be published. Required fields are marked *