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Posted: 4/15/2021 8:16:42 PM EDT
[#1]
Not an expert but I believe you would pay tax on the $20k because that is the net purchase price of the car. Doesn't matter that they were giving you an equal amount for your trade, you only applied $10k towards the purchase of the new car.
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Posted: 4/15/2021 8:22:33 PM EDT
[#2]
By tax I assume you mean the sales tax?
I would think you'd pay sales tax on the net purchase price of the vehicle. If trade in value equals prince of the new (to you) vehicle, the net price is zero so no tax. If you sell your car for 30 grand, take 20 of in to you, and apply 10 to another car, then net purchase price is the price minus the 10 grand trade in amount. I've never traded in a car, so just an assumption on my part as to the logic behind what is the taxable amount for sales tax. |
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Posted: 4/15/2021 10:55:18 PM EDT
[#3]
Quoted: I know in Tx the value of your trade is deducted from the price of your new car So if the trade is 30K and the new car is 30k you dont have to pay tax as you already paid it on your trade in I get that So if trade is 30K and new car is 30K and I take 20K cash back for my trade and use 10K for a down payment is it still 0 tax or do I pay tax on the 20K because I took cash back. #2 does not sound right but that is what the sales man told me not finance just the floor shlub thanks If you retained 20K, you only traded in 10K. |
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Posted: 4/16/2021 2:36:07 AM EDT
[#4]
Look at the Finance Sheet. If on the sheet you traded in a vehicle for $30K against a vehicle you purchased for $30K your net sales tax liability = $0 If on the sheet you traded in vehicle for $30K and took out / walked away with $20K cash, you would owe sales tax on the $20K difference in the Purchase between your Trade in ($10K) Vs. your new vehicle ($30K). That eats up some of the $20K you "cashed out". BIGGER_HAMMER 
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Posted: 4/16/2021 11:29:00 AM EDT
[#5]
The only number that matters for taxes is the difference between the vehicle you bought and the vehicle you sold.
How much you took home from the transaction or how much you financed does not matter. There is a $5.00 minimum for even trades. |
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Posted: 4/16/2021 5:04:39 PM EDT
[#6]
The selling dealer making out a $20k check back to you from your $30k trade-in is no different than the selling dealer making out a $20k check to a bank that had a lien on your $30k trade-in, you still had a $30k trade-in.
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Posted: 4/16/2021 7:02:00 PM EDT
[#7]
So we have people saying both ways lol.
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Posted: 4/16/2021 7:21:29 PM EDT
[#8]
Ya get what you paid for here.
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Posted: 4/17/2021 1:47:24 PM EDT
[#9]
Quote HistoryQuoted: So we have people saying both ways lol. I'm a Texas car dealer. |
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Posted: 4/17/2021 3:00:24 PM EDT
[#10]
Quote HistoryQuoted: I'm a Texas car dealer. well cool then thanks. The floor salesman was a idiot and cost them a sale. I was offered 2k more than I paid for my 2019 f150xlt my plan was to cash out the 20K I need to finish paying off my house and get a econobox for a few months. till I find a deal on a higher up package. I still think gas is going to skyrocket and trucks prices will drop. |
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