iPhone Upgrade Program Tax Question

Discussion in 'iPhone' started by kjotwani, Jun 19, 2016.

  1. kjotwani macrumors regular

    Joined:
    Sep 11, 2014
    #1
    Have a question about that iPhone Upgrade Program Tax. So when we upgrade our phone using the Apple Upgrade program, we pay the tax for the entire device upfront.
    If we return the device after 12 months and upgrade to a new iPhone, do we get a pro rated rebate or adjustment on the extra tax we paid. As we return the phone after 12 months we only use it for half the cost

    Not sure if this was answered or discussed before
     
  2. Applejuiced macrumors Westmere

    Applejuiced

    Joined:
    Apr 16, 2008
    Location:
    At the iPhone hacks section.
    #2
    No.
    There is no adjustment or extra tax.
    You have to pay full tax Every time you purchase or upgrade to a new device.
     
  3. kjotwani thread starter macrumors regular

    Joined:
    Sep 11, 2014
    #3
    Hmm. I understand that when you purchase the device in full u pay entire tax upfront. But specially when leasing (here the upgrade program) , the tax should be ideally on the month payments. When someone leases a car, the tax is on the monthly payments and not full upfront.
    Not sure if i am missing something
     
  4. thekb macrumors 6502a

    Joined:
    May 8, 2010
    #4
    I don't know how it works with the iphone upgrade program, but when you buy a car you pay tax all up front. When you buy another car and trade-in your old one, they offset the purchase price of the new car by the trade-in amount, so you only pay sales tax on the difference between the two.
     
  5. kjotwani thread starter macrumors regular

    Joined:
    Sep 11, 2014
    #5
    Yup exactly. So after the trade in we pay taxes only on the remaining amount(delta). But if we have to pay the whole tax again on the new device while returning our current device then it's a waste of money just going to taxes.
     
  6. timeconsumer macrumors 65816

    timeconsumer

    Joined:
    Aug 1, 2008
    Location:
    Portland
    #6
    If you were leasing the phone then tax on the monthly payment would make sense. But you're not, in this case you're financing the purchase (through whatever bank Apple uses) so therefore you'd pay the tax on the full amount.
     
  7. kjotwani thread starter macrumors regular

    Joined:
    Sep 11, 2014
    #7
    Got it. So this means that when I turn in the phone and upgrade, I just lose the entire tax tax money I paid? And repay full tax for the next phone?
     
  8. Drestin-Black Suspended

    Drestin-Black

    Joined:
    Jun 19, 2016
    Location:
    I live in a split level head!
    #8
    Yes.

    There are different laws pertaining to trading in a car depending on the state.

    http://budgeting.thenest.com/pay-sales-taxes-new-car-minus-trade-in-34188.html

    It's doubtful that any states have initiated any laws on cell phone trade in so you will pay the full tax.
     
  9. Applejuiced macrumors Westmere

    Applejuiced

    Joined:
    Apr 16, 2008
    Location:
    At the iPhone hacks section.
    #9
    It's not a car.
    It's a cell phone.
    You don't get the same type of thing with tv's, laptops or any other regular sold items.
     

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