I always understood that when you trade in a vehicle you pay taxes on the difference of trade in value and new car price.

I am trading in a truck titled in my personal name and buying the new vehicle in my LLC name with me as a third party guarantor. I am in louisiana and this transaction is taking place at a Texas dealership. Texas dealership says I have to pay full tax on new vehicle because I am going from my name to LLC.

Anyone have any knowledge on this? TIA!!

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Posted by bubbz

Baton Rouge

Member since Mar 2006

22817 posts

Posted on 5/21/14 at 12:17 am to rpg005

Sounds right, due to title going in LLC.

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Posted by ThisWayChad

Member since Nov 2009

2531 posts

Posted on 5/21/14 at 6:50 am to rpg005

Is there a reason you can't just buy the vehicle in your individual capacity and then contribute it to the company?

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Posted by TigerSaints318

Shreveport

Member since Dec 2009

1797 posts

Posted on 5/21/14 at 12:24 pm to rpg005

If you are on there as a guarantor then you are entitled to tax credit on your trade in.

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Posted by rpg005

Member since Apr 2010

700 posts

Posted on 5/21/14 at 9:00 pm to ThisWayChad

I want it to be titled in my company name so it will not go against my personal debt. With it being titled in my company name and me as the third party guarantor then it doesn't show up on my personal credit report.

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Posted by ThisWayChad

Member since Nov 2009

2531 posts

Posted on 5/22/14 at 8:59 am to rpg005

quote:
I want it to be titled in my company name so it will not go against my personal debt. With it being titled in my company name and me as the third party guarantor then it doesn't show up on my personal credit report.

Why don't you contribute the old vehicle to the LLC and then trade it in?

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Posted by Tigerpaw123