dumb question about trading a car in. Maybe 1 of u can help.
07-06-2002, 01:13 PM
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dumb question about trading a car in. Maybe 1 of u can help.
I have seen this on various board about tax saving on a trade. is it true in VA? For example, if I trade a car will the value of that trade amount be subtracted from new car purchase and get taxed only on difference? please advise...
thanks!
LIL Raja
thanks!
LIL Raja
07-06-2002, 06:42 PM
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No. Virginia taxes you on the sale price of the car (gross price before trade in).
Also, if you lease a car in VA you pay sales tax on the capitalized cost (selling price) of the car. Then if you buy it at the end of the lease, you are taxed on your purchase price at that time.
Also, if you lease a car in VA you pay sales tax on the capitalized cost (selling price) of the car. Then if you buy it at the end of the lease, you are taxed on your purchase price at that time.
07-06-2002, 11:20 PM
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DAMN I hate VA. i am gonna look to see if I can get a place in West Va. at least i can avoid the property tax and other bs things VA has.
LIL Raja
LIL Raja
07-09-2002, 11:13 AM
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I thought if you lease you only pay tax on the difference between the selling price of the car and the residual value at the end of the lease.
It makes sense then if you buy it you pay the tax on the residual value. (Residual Value + (Price - Residual Value) = Price. Your not getting taxed twice -- just taxed in two installments because you didn't buy "all of the car" when you first leased it.
Raja,
Even if you count something of value towards the purchase price (i.e. your trade), you still paid the purchase price and pay sales tax on all it.
Virginia is like the 3rd least taxing state in the country. There's really no place locally it gets better (Maryland doesn't tax cars, but they kill you on income tax, but for a 2 year old car, MD insurance is more expensive than VA insurance + VA property tax).
And at least the car tax (what's left of it) is deductible...
It makes sense then if you buy it you pay the tax on the residual value. (Residual Value + (Price - Residual Value) = Price. Your not getting taxed twice -- just taxed in two installments because you didn't buy "all of the car" when you first leased it.
Raja,
Even if you count something of value towards the purchase price (i.e. your trade), you still paid the purchase price and pay sales tax on all it.
Virginia is like the 3rd least taxing state in the country. There's really no place locally it gets better (Maryland doesn't tax cars, but they kill you on income tax, but for a 2 year old car, MD insurance is more expensive than VA insurance + VA property tax).
And at least the car tax (what's left of it) is deductible...
07-09-2002, 04:37 PM
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[QUOTE]Originally posted by JoeCritter
[B]I thought if you lease you only pay tax on the difference between the selling price of the car and the residual value at the end of the lease.
[B]I thought if you lease you only pay tax on the difference between the selling price of the car and the residual value at the end of the lease.
07-23-2002, 06:25 AM
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[QUOTE]Originally posted by JoeCritter
[B]I thought if you lease you only pay tax on the difference between the selling price of the car and the residual value at the end of the lease.
[B]I thought if you lease you only pay tax on the difference between the selling price of the car and the residual value at the end of the lease.
07-31-2002, 02:27 PM
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Originally posted by LIL RAJA
good point. I can't wait to see the car's tax disappear. As for insurance, yeah i think VA is cheaper than MD. I wonder why? MD is quiet safe place.
anyway, where in sterling r u? i wonder if i have seen u around. Lately, i have been seeing a lot of s2000 out...
good point. I can't wait to see the car's tax disappear. As for insurance, yeah i think VA is cheaper than MD. I wonder why? MD is quiet safe place.
anyway, where in sterling r u? i wonder if i have seen u around. Lately, i have been seeing a lot of s2000 out...
1) Maryland doesn't require annual safety inspections.
2) Virginia lets you pay $500(???) to not carry insurance. That $500 is used to subsidize the risk pool/state plan rates, so the worst case scenario for insurance isn't as bad as it could be...Of course then though, VA has to require under-insured/uninsured motorists coverage to protect you from all the people who can't afford 25/50/10 coverage.
I live in Sugarland Run, and commute down the ffx county parkway. If you read Harry Potter, you'll recognize my Sebring's Plates.
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