I sold and bought a new car within 2 wks. of each other,can I take the amount the car I sold off the sales tax
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Do they take the $3,000 I sold my car for off the $10,000 price of the new car I bought when I go into the DMV to pay sales tax on it?
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Answer:
No, you only get sales tax credit if you trade in a vehicle and purchase from the same dealership. In addition, currently California, the District of Columbia, Hawaii, Maryland, Michigan allow no deductions for trade-ins when calculating sales tax, so if you live in one of those States, it doesn't matter anyway. I hope this helps.
Bob Dole at Yahoo! Answers Visit the source
Other answers
You can net the two only when you do a trade-in. Otherwise, you have to pay sales tax on the entire $10,000 purchase price of the new car. This is the case in Texas at least. It may vary by state.
traley1
nope, the government takes their money off the top, you still have to pay...
Magley64...AM
Sales tax was paid by the buyer of your old car to them and you will have to pay the sales tax on the new car that you bought. Unless you are tax exempt (a commercial trucking company or a dealer) you will not be able to get around this. That is why they make it so hard to get a dealer's license!
Miss Motor Mouth
NOPE..............
UCANTCME
No, if I am reading your question correctly. The price you paid for the car is what you pay the tax on. The trade in or whatever doesn't affect that.
cdever5
You are only obligated to pay tax on the difference between what you traded in and the car you bought. In your case it would be tax on $7000. If you sold the car and then went to the dealer and bought without a trade, you pay tax on the entire $10,000.
Otto
Unfortunately you only receive a tax credit if you trade in your old car. This is something that not alot of people never consider when they are given a trade in amount. It usually can make up some or all of the difference between selling your car on your own or trading it in. However on trades under $5k like in your case, you probably made out alot better buy selling it on your own and giving up the small tax credit.
Joseph T
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