Question about Trade in ...
Ok,
if I still owe Bank money on my Trade in Lets say - New car I wanna buy cost 30K - I have a car I wanna trade in, worth 20K, but I still owe Bank 15K - so the dealer will pay the bank 15K to buy my car out, the rest of the money goes into the cost of new car. Will my "taxable" amount based on : - (New car cost - Trade in) x tax rate = the amount of tax I need to pay or - (New car cost - (Trade in - loan from bank)) x tax rate = taxable amount ? I think it should be the first one, correct? I'm 90% sure. just wanna be 100% :) |
Depends on your state law. In California, the "taxable" amount would be the selling price of the car before any rebates or trade-in amounts are subtracted. Not sure about the law in NY.
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I found some info about this and it seems that the taxable amount in NY is
(Selling price - Trade in) x Tax rate = Tax due. Thanks a lot ! |
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