Do you pay tax on a straight trade?
02-21-2007, 05:47 PM
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Do you pay tax on a straight trade?
I'm considering trading my Z for another one, but not with a dealer. Does one pay tax to the DMV on a straight trade between two private parties if no money is exchanged? If so, how is the amount calculated?
02-22-2007, 08:20 AM
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YES!!!
California will tax you. A straight trade, car for car, is the same as a straight trade cash for car.
Once you get to the DMV to register your car, they will ask what you paid for the car. DO NOT say it was a trade, or they will look up the value and tell you what your taxes are. Tell them you bought it cheap. ( if the value is $25k, tell them $12500 ) Or lie and say family transfer, then they just give you the minimum tax amount. ($36 last time I did it )
California will tax you. A straight trade, car for car, is the same as a straight trade cash for car.
Once you get to the DMV to register your car, they will ask what you paid for the car. DO NOT say it was a trade, or they will look up the value and tell you what your taxes are. Tell them you bought it cheap. ( if the value is $25k, tell them $12500 ) Or lie and say family transfer, then they just give you the minimum tax amount. ($36 last time I did it )
02-22-2007, 10:16 AM
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How much BS is all of that? You are not earning any money on selling you car, in fact you might be losing money, you are just transferring the way you posses an asset. If you had a Honda Civic and its value is 14,000 and you sell it for 14,000, you haven't profited, you have just changed the way you posses property. Thank god I live, and reside in NC (at least my permanent address does)
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02-23-2007, 07:26 PM
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Originally Posted by UGOTZ'D
in nc you pay no tax for the trade just property tax on your new car. hope that helps
The state doesn't car how yu aquired teh vehicle (cash trade, or even gift) when you apply for a title, they will assess and collect the tax.
And many counties (including mine) wil also require and annual personal property tax.
bill
Last edited by bailey bill; 02-23-2007 at 07:33 PM.
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