question about trading down and taxes
#1
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question about trading down and taxes
i have just moved into the city and dont really have the chance to drive my car anymore. i was considering trading down to a civic to free up some cash, and unload some debt. how do the taxes work? would i have to pay sales tax again on the value of the car i am receiving? thanks in advance for your replies.
#3
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99.99999999% Yes.
#4
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depends on where you live... in Washington State and Illinois, your trade goes towards your new car price... since i'm guessing your current car is worth more than the civic you're looking for, you wouldn't pay any sales tax in that case. if you were trading up, you'd only pay tax on the difference between your trade in value and the final price of your new car. again, thats at least the case in Washington and Illinois.
#5
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Originally Posted by pbm317,Jun 27 2007, 01:12 PM
depends on where you live... in Washington State and Illinois, your trade goes towards your new car price... since i'm guessing your current car is worth more than the civic you're looking for, you wouldn't pay any sales tax in that case. if you were trading up, you'd only pay tax on the difference between your trade in value and the final price of your new car. again, thats at least the case in Washington and Illinois.
also are there any other fees that go along with this type of transactions??? any estimates on dmv and registery costs?
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#8
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Originally Posted by kix,Jun 27 2007, 01:32 PM
You live in california... you SOL since you will have to pay tax again
I used to trade in too quick (every 2-3 years) but now keep my cars 5-8 years to spread out the tax and the depreciation pain as much as possible.