Nissan 370Z Forum - View Single Post

Jsolo · 07-30-2015, 11:50 AM

I don't see how the amount owed can be taxed?? Yes it gets rolled into the new loan, but as a separate entity. Essentially a loan is being taken out for a loan. That's my understanding here in IL.

In other words, you'll pay tax on $15K, but your loan will be for the $35K (+ whatever the tax on the $15K is).

If the remaining loan does get taxed in your state, perhaps it makes sense to pay off the loan first then trade the car in.

07-30-2015, 11:50 AM	#10 (permalink)
Jsolo Track Member Join Date: Dec 2011 Location: chicago Posts: 783 Drives: '12 G37 6MT Rep Power: 14	I don't see how the amount owed can be taxed?? Yes it gets rolled into the new loan, but as a separate entity. Essentially a loan is being taken out for a loan. That's my understanding here in IL. In other words, you'll pay tax on $15K, but your loan will be for the $35K (+ whatever the tax on the $15K is). If the remaining loan does get taxed in your state, perhaps it makes sense to pay off the loan first then trade the car in. __________________ G37S Sedan 6MT, Eibach swaybars, Invidia Exhaust, Weaker Clutch Pedal Spring For sale links Last edited by Jsolo; 07-30-2015 at 11:52 AM.