Trading my 997S w/ a Private Owner...taxes?
#1
Trading my 997S w/ a Private Owner...taxes?
If I "trade" cars with another private owner, do I still have to pay sales tax? Assuming it's a clean trade with no additional exchange of $$?
#3
yeah, can't find much info on the washington state dept of licensing site about trading cars with private owners. but i figure if no money exchanges hands...then you shouldn't have to pay. just curious if anyone's done this before.
#6
I don't know about Washington, but in California you would, possibly unless it involved a family member. When you go to register it, you would need to declare the value of the car. It isn't much different than if you traded a car at a dealer, where you still pay the tax on the full value of the purchased car, not on the net difference between the traded car and the new car.
#7
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#8
I wish more states were like that, but they don't have the other revenues that Nevada has. I believe that if I, a resident of California, purchased a car in Nevada, I would have to pay tax on it when registering it in California. There may be an exemption if I own it for six months in Nevada, but then I might need a Nevada address, Nevada insurance, etc. etc. Does anyone know how this would work?
#10
Not sure who you are responding to scuzy, but most states/provinces tax used cars regardless of whether private sales or through dealers. Why? Because they can, due to the fact that the registration process makes it possible for the government to know when it changes hands, so they stick their hand out for taxes. It is a huge source of tax revenue for them.
#11
In Washington, if I trade the car in, I only have to pay taxes on the difference between what they give me and what I buy. So if I end up trading it a the same price I buy a car from a dealer for, it's a wash and I have to pay no taxes.
Seems like it would make sense for this to apply in a private trade with now $$ transferred, but I dunno. Seems so fuzzy - probably intentional.
Seems like it would make sense for this to apply in a private trade with now $$ transferred, but I dunno. Seems so fuzzy - probably intentional.
#12
that doesn't seem right thou since i already paid taxes when i paid for the car and nowi am selling for less to a private sale. There shouldn't be any taxes taken from that otherwise most people will get hit selling their use cars. I don't remember ever having to pay taxes selling my car.
EDIT: I think the buyer has to pay a use car tax not the seller since he's already been taxed.
EDIT: I think the buyer has to pay a use car tax not the seller since he's already been taxed.
Last edited by scuzy; 04-09-2008 at 08:21 AM.