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?
2006-12-13 07:08:01 · 7 answers · asked by Cid2006 2 in Cars & Transportation ➔ Buying & Selling
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.
2006-12-13 07:23:08 · answer #1 · answered by The Auto Evaluator™ 7 · 4⤊ 1⤋
Not sure about other states, but Georgia now pays only the difference - $8,000
2006-12-13 07:15:34 · answer #2 · answered by ThePerfectStranger 6 · 0⤊ 0⤋
In FL, once you provide somebody a automobile, there's a latest tax on the cost of the article. it would desire to be greater effective for her to 'sell' it to you, for a beneficial inexpensive fee, so any taxes could be negligible. It varies states to state.
2016-10-05 06:44:10 · answer #3 · answered by kroner 4 · 0⤊ 0⤋
Just the difference. You've already paid taxes on the trade-in.
2006-12-13 07:15:22 · answer #4 · answered by Anonymous · 0⤊ 1⤋
It depends on your state. The dealership will likely know, otherwise check with your states Department of Motor Vehicle (DMV)
2006-12-13 07:15:54 · answer #5 · answered by CP 4 · 1⤊ 1⤋
just the cash difference between the sale price and the trade allowance.
20,000
8,000 -
------------
12,000 =taxable
+dealer fees=taxable
license and registraion=non-taxable
2006-12-13 07:29:00 · answer #6 · answered by gr 5 · 0⤊ 1⤋
you pay taxes only on the difference..however if a rebate is involved, you do pay taxes on the rebate as well
2006-12-13 10:33:57 · answer #7 · answered by italianone70 4 · 0⤊ 1⤋