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Do you pay taxes on trade in value of your vehicle when purchasing new one?
Posted on 9/14/16 at 7:32 pm
Posted on 9/14/16 at 7:32 pm
Let's say I want a vehicle that is worth $33k and my current vehicle is worth $33k. I could sell the current one for $35k private party with a good bit of hassle then buy the $33k vehicle. Then I'd also have to pay 10.5% local sales tax which brings the price to $36,365 before all other fees.
If the dealer agreed could I just trade in for an even swap and not owe any sales taxes?
If the dealer agreed could I just trade in for an even swap and not owe any sales taxes?
4
Posted on 9/14/16 at 7:34 pm to Asgard Device
You do not pay sales tax on a trade in. That is one advantage to doing a trade in vs doing a sale than purchase.
Posted on 9/15/16 at 7:08 am to LSUFanHouston
you do not pay taxes on the value of your trade in. That is the advantage of trading in vs selling outright. if you traded in a 33k vehicle for another 33k vehicle, I do not believe you would owe taxes. Unless governor douche bag has changed that.
Posted on 9/15/16 at 8:57 am to Asgard Device
The one assumption to the tax credit is that you registered the trade in the same state you are registering the new purchase. For example you wouldn't get tax credit if the trade was registered in Texas and the new purchase was registered in Louisiana.
Posted on 9/15/16 at 10:27 am to lsuCJ5
quote:
t. if you traded in a 33k vehicle for another 33k vehicle, I do not believe you would owe taxes.
Still this way...as of now...
Posted on 9/15/16 at 10:38 am to TigerSaints318
How about if you trade in a vehicle for another vehicle AND $3k cash back?
Posted on 9/15/16 at 11:09 am to Asgard Device
If you have already found a buyer for your vehicle, some dealers will allow you to trade the vehicle to them for the value agreed to between you and your buyer and your buyer just cuts them a check for your old vehicle. The dealer just acts as a middle-man and handles the paperwork. That way you can get the tax credit for the new purchase. The buyer for your vehicle is no worse off. I'm not sure how it works if your trade value is higher than the price you are paying for the new vehicle though.
Posted on 9/15/16 at 2:20 pm to txtiger79
Works the same way. No taxes, and cut a check back.
Posted on 9/15/16 at 7:48 pm to Coach Guidry
Sounds like I'm selling the car and getting a new pickup truck then.
This post was edited on 9/15/16 at 7:49 pm
Posted on 9/16/16 at 9:59 am to Asgard Device
quote:You could but the dealer isn't going to be anywhere near private party values on your trade. If they want the sale bad enough you might get lucky.
If the dealer agreed could I just trade in for an even swap and not owe any sales taxes?
Posted on 9/18/16 at 11:08 am to Asgard Device
No, the buyer pays sales taxes in Louisiana.
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