NYS sales tax on private party trade? - Defender Source
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  #1  
Old March 25th, 2007, 02:06 PM
karlusmagnus
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Karl O'Donoghue
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NYS sales tax on private party trade?

I searched, both here, archive and through NYC DMV, and either I cannot find the answer, or I don't want to handle the truth
namely, that for a private party trade, the sales tax is paid on wholeale vehicle value, and not on difference between both vehicles traded?

example. I trade my 2001 range rover for D90, and I give range rover plus cash, any new yorkers able to tell me if I pay sales tax on wholesale value of D90, or on the cash difference in value between the 2?

If I traded to a dealer, I believe that, I only pay sales tax on difference between my trade-in value, and new vehicle.

Anyone able to point me in right direction?

Thanks,

Karl
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  #2  
Old March 25th, 2007, 02:45 PM
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Scott
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Congrats on getting a 90... Every state is different, but normally (Here in Atlanta and in Chicago) if you buy from a private party, there is no sales tax. NY is probably different, but it should not be.

You could probably play with the structure of the sale to maximize the lack of sales tax, at least on paper. The end result will be the same.
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Old March 25th, 2007, 02:56 PM
karlusmagnus
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Karl O'Donoghue
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Thanks Scott, but we'll have to put the champagne/guinness on hold for the moment.
Not there yet.
I am still looking, and in the looking process, several possibilities have arisen, so i was trying to find out what my tax liability would be, as there is a big difference between the 2 scenarios.

Have met good people in the process though,
so I'm sure it will happen. And I can wait. so no worries.

Karl.
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  #4  
Old March 25th, 2007, 04:19 PM
hamiamham
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mike
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I live in NYC. In order to get the car registered in new york state you actually pay sales tax to the county you register the car in. So, if you register it in Nassau county you pay sales tax to and at the rate of that county. It was my understanding from the dealer if I had traded in a car the sales tax liability would be the net of the trade in and the new car purchase thereby lowering you tax liability. I pulled up the NYS tax forms as they apply to motor vehicles and they ask questions that imply they take into account a trade on a private transaction assuming the traded-in car is at a reasonable price. That being said it says "the dmv will calculate the tax."
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  #5  
Old March 25th, 2007, 10:06 PM
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Jesse McCoy
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Write a bill of sale for a lower price, leave the trade out of it. Return the favor to the guy you trade with.
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  #6  
Old March 25th, 2007, 10:53 PM
Monkeyboy

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Quote:
Originally Posted by hamiamham
... It was my understanding from the dealer if I had traded in a car the sales tax liability would be the net of the trade in and the new car purchase ..."
That's how it works in Iowa too. But we're all so honest, the county never asks for a bill of sale.
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