Question:
What do you pay taxes on when you trade in a car at the dealership? for instance, the sale price of the new car is $20,000 and my trade-in will be $12,000, am I paying taxes for the entire $20K or just the difference $8,000?
Answers:
I'm selling my motorcycle, have you ever sold anything that large on eBay? was it a hassel?
Every state is different. For instance Indiana and Illinois would consider that tax credit, while Michigan would tax the full $20,000. If you are planning on leasing however, you will get no sales tax credit. I hope this helps.how can i sell these junk cars in my yard?
Just the difference. You've already paid taxes on the trade-in.Have you got a ute/tub back for a 85 Hilux you don't want ??
Not sure about other states, but Georgia now pays only the difference - $8,000Do you like the new look of my front room?
It depends on your state. The dealership will likely know, otherwise check with your states Department of Motor Vehicle (DMV)Why didn't the car dealer let me drive the car when I asked to test-drive?
just the cash difference between the sale price and the trade allowance.What is the best new compact pickup truck to buy?
20,000
8,000 -
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12,000 =taxable
+dealer fees=taxable
license and registraion=non-taxable
What would my low-milage, single owner '87 Buick T-Type (GN) be valued at these days (retail price)?
you pay taxes only on the difference..however if a rebate is involved, you do pay taxes on the rebate as wellMore Questions & Answers ...
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