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Old 08-19-2010, 07:05 PM   #2 (permalink)
wilsonp
A True Z Fanatic
 
Join Date: Jul 2010
Location: Virginia
Posts: 1,134
Drives: 2009 Touring Sp Nav
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wilsonp will become famous soon enough
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You were so close:
What Fees Should You Pay?

Looks like New York has a Y in the trade-in column for taxing trade-ins, so out of luck just like me!

Of course, the fact that the Virginia line appears completely wrong is a bit worrisome... maybe you should just check the NY DMV site.

Checking further, looks like they might be wrong for New York as well:
http://www.tax.state.ny.us/pubs_and_...le_receipt.htm

says no:
Quote:
As a seller, when you accept something as a trade-in and reduce your selling price accordingly, sales tax is only due on the reduced price after subtracting the credit for the trade-in, as long as you plan to resell the trade-in item. This is most common with sales and purchases of motor vehicles.

Example: A customer comes into your car dealership and decides to buy a vehicle from you for $22,500. You agree to take the customer’s current vehicle as a trade-in and give him a $4,500 credit for his old vehicle. You would calculate the taxable amount of the sale as follows:

Original price $22,500
Trade-in -4,500
Sale price subject to tax 18,000

Again, this is only true as long as you plan to resell the vehicle being traded in, and the trade-in allowance is being applied as partial payment for the item being purchased.
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Last edited by wilsonp; 08-19-2010 at 07:41 PM. Reason: correct info
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