Quote:
Originally Posted by TheSnakeJake
when you trade in a vehicle to purchase a new one, you only pay tax on the difference in price.
example:
new car = $30,000 ; trade-in value = $20,000
you only pay tax on $10,000.
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You could finance the whole $10k or pay it all in cash, but the sale price is still $10k after trade-in. Tax would still be the same amount.