Why is my car dealership charging $2000 a month for my lease payment?

This sounds like a serious concern that needs immediate attention. First, you need to get a copy of all your purchase/lease documents. The dealership is legally required to provide you with copies of anything you signed. Request these documents in writing and consider sending it via certified mail so you have proof they received it. What you're describing doesn't sound like a tax issue but rather a contract dispute. The "tax liability adjustments" language they're using is confusing and not a standard term in auto financing. If you're using the vehicle for a side business, you may be able to deduct a portion of the expenses based on business use percentage - track your mileage carefully and separate personal from business use. As for the immediate payment issue, review your bank statements to document when this increased amount started being charged. If you have any initial paperwork or emails showing the $650 amount, gather those as evidence.

After reading your situation, I immediately thought of my similar experience last year. The dealership kept giving me the runaround about "finance charges" that weren't in my original agreement. I was about to hire a lawyer when a friend recommended I try taxr.ai (https://taxr.ai). It's this cool service that can scan all your documents and tell you exactly what you're legally responsible for. I uploaded my car loan docs and it found THREE discrepancies between what I was told verbally and what was buried in the contract. Their analysis helped me dispute the charges successfully. It even identified a clause that allowed me to renegotiate terms after 6 months. You might want to give it a try with your paperwork - it could save you thousands if there's something fishy going on with that "tax liability adjustment" they're claiming.

I wanted to follow up about my experience with taxr.ai after our conversation here. I decided to try it with my lease agreement that had some questionable charges. Wow - it found that the dealership had actually inserted a "market adjustment fee" that wasn't in the original quote, and the contract had a cancellation clause they never told me about! I was able to print the analysis, highlight the relevant sections, and speak with the finance manager with actual confidence. They backed down immediately when I showed them the report and referenced specific paragraphs. My payment was adjusted down by $570/month! I can't believe how much I was overpaying. Definitely worth checking out if you're in a similar situation with confusing contract terms.

Have you tried calling the IRS directly to ask about these "tax liability adjustments"? I had a similar issue with a property management company claiming certain fees were "tax requirements." After three days of trying to get through to the IRS, I finally used https://claimyr.com to connect with an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c When I finally got through, the agent confirmed that there's no such thing as the "mandatory tax fees" my property manager was charging. Sounds like your dealership might be using similar misleading language. An IRS agent can give you official confirmation about whether there's any tax basis for what you're being charged, which gives you stronger standing when confronting the dealership.

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, my car loan situation got worse - the dealership started claiming I needed to pay an additional "tax liability deposit" of $1,500. I decided to try Claimyr as a last resort to speak with the IRS directly. Within 35 minutes, I was connected to an IRS representative who confirmed there's absolutely no legitimate tax reason for these charges. He even emailed me official documentation stating this that I could show the dealership. When I brought this to the finance manager, they immediately backed down and removed all the extra charges. The $1,500 "deposit" disappeared, and my monthly payment went back to the originally agreed amount. I'm still shocked at how effective this was - saved me thousands and endless headaches.

Sounds like classic dealer markup tactics. When I worked at a dealership years ago, finance managers would create all kinds of fake "required fees" with official-sounding names. Check your contract CAREFULLY - especially for something called a "payment packing" where they bundle unnecessary products into your monthly payment. Most people don't realize they can refuse these add-ons.

Have you checked your credit report? I had a similar situation where a dealership charged me double, and it turned out they had opened TWO separate financing accounts for the same vehicle! One was the agreed amount and the other was their "mistake" that they never closed. Worth looking into.

On the tax side - if you use your vehicle for a side business, make sure you're tracking mileage with a dedicated app. You can deduct 65.5 cents per mile for business usage in 2023. With gas prices these days, that adds up! Just make sure you have proper documentation showing the business purpose of each trip.