sell or trade?
Which is the best way to go..sell privately or trade?
Forum Discussion
From the California board of equalization web site concerning taxes on cars and trades.
http://www.boe.ca.gov/sutax/faqpurch.htm#9
Are trade-ins taxable?
Yes. The value of a trade-in is considered taxable. For example, if you sold a car for $20,000 and accepted a trade-in valued at $4,000 as partial payment, tax would be based on the $20,000 selling price (that is, you would not deduct the value of the trade-in from the sales price of the car being sold when computing sales tax).
http://www.boe.ca.gov/sutax/faqpurch.htm#9
Are trade-ins taxable?
Yes. The value of a trade-in is considered taxable. For example, if you sold a car for $20,000 and accepted a trade-in valued at $4,000 as partial payment, tax would be based on the $20,000 selling price (that is, you would not deduct the value of the trade-in from the sales price of the car being sold when computing sales tax).
