Question on what taxes I pay on new vehicle?

[mowin]

Currently I owe 24k... dealer is giving me a trade of 41k.  New rig is 51k.  What do I pay tax on?

[Bionic]

 Deleted 

Edited May 12, 2021 by Bionic

[Robhuntandfish]

You'll pay tax on the sale difference not the whole thing cause you have a trade in. Should only be paying tax on the 10k if I am reading that right. As long as they are moving your debt on it to you new loan and your not paying it off separate first .

Edited May 12, 2021 by Robhuntandfish

[mowin]

51 minutes ago, Robhuntandfish said:

You'll pay tax on the sale difference not the whole thing cause you have a trade in. Should only be paying tax on the 10k if I am reading that right. As long as they are moving your debt on it to you new loan and your not paying it off separate first .

Correct rolling the current loan into new loan. 

Edited May 12, 2021 by mowin

[Stein13]

Yes you will pay tax on 10k 

[Steve D]

1 hour ago, mowin said:

What do I pay tax on?

$34,000

[Jeremy K]

Call up albany and tell them that biz says everything is negotiable and then go from there.

[Steve D]

50 minutes ago, mowin said:

Correct rolling the current loan into new loan. 

Didn't know you could do that. Usually the first loan is paid off and a new loan started. Better check for fine print and hidden fees.

[mowin]

8 minutes ago, Steve D said:

Didn't know you could do that. Usually the first loan is paid off and a new loan started. Better check for fine print and hidden fees.

I know that the current value of the trade is deducted from the taxes.  Just not sure when.

[suburbanfarmer]

3 hours ago, mowin said:

I know that the current value of the trade is deducted from the taxes.  Just not sure when.

 

5 hours ago, mowin said:

Currently I owe 24k... dealer is giving me a trade of 41k.  New rig is 51k.  What do I pay tax on?

You pay tax on the new difference, which I believe will be 34k...the only time the state doesnt get to dbl dip.

Edited May 12, 2021 by suburbanfarmer

[mowin]

9 hours ago, Steve D said:

Didn't know you could do that. Usually the first loan is paid off and a new loan started. Better check for fine print and hidden fees.

Should of said the remaining balance of the first loan would be added to the new loan.  Yes the old loan would be paid off. 

New is 51k trade is 41. Leaves a balance of 10k.  Add 10k to what I owe on current loan ,24k, and I'd be financing 34k 

[moog5050]

Rob is correct.   For sales tax purposes, deduct trade in allowance from purchase price of new vehicle.  That is the amount you pay sales tax on.   

[sbuff]

Ok now tell us about the one ton !!

[mowin]

1 minute ago, sbuff said:

Ok now tell us about the one ton !!

Chevy Silverado LT Z71. 6.6 gas. Snowplow prep, towing package. Lots of other goodies.  

[sbuff]

Love it .....