Selling truck taxes with buying new one

[Huntin]

Planning on selling my truck and buying a new one from dealer. I know when you trade in a vehicle, the trade in value comes off the new truck taxes. Can you somehow file for a tax refund if you sell the truck and not trade it in to get the extra money?

[dallred]

If this will help, I arranged for my brother to buy mine from the dealer for the trade value I was getting. I saved the sales tax and my brother received a fair price. It only works if the dealer and your buyer are satisfied.

[jomw10]

I don’t think you need to do that. When you sell private. The buyer pays the taxes when they get their registration. You don’t pay taxes on it, so nothing to deduct.

[bbqfan5909]

Pending what difference is on trade vs selling outright, you most likely will benefit trading in, reducing your tax on new vehicle. Plus, the tax paid on the new vehicle can be written off on taxes pending your situation. If you sell outright, buyer is responsible for taxes, and you have to handle all the paperwork.

[Rick]

no

[Huntin]

So I buy a $50,000 dollar truck and trade in a $20,000 dollar truck. I will only pay taxes for $30,000 dollars.

[Double R 2]

So I buy a $50,000 dollar truck and trade in a $20,000 dollar truck. I will only pay taxes for $30,000 dollars.

Correct. Not unless something has changed, that is how it has worked for me in the past.

[60 Deluxe]

You have to do the math. Say your truck is worth $20,000 but the dealer only offers $15,000. You would save $900 (roughly) on sales taxes but lose $4100 on the deal because the dealer paid $5000 less than you could have sold it for. Sometimes it works, sometimes it is close enough that you only lose a couple hundred, but don't have the hassle of selling your vehicle so you go ahead and take the trade in deal.

[Hollywood]

You want to do what we call a passthrough. You find a buyer for your truck, agree on price & them willing to do a passthrough with the dealer. Dealer in tern handles all the paperwork & title work for them. You get trade & tax credit for amount you sold used truck.
We do the same thing with heavy equipment. I can sell with Ritchie Bros. Auction with a signed contract that the proceeds go to a Dealer I am buying new equipment from.

[flywise]

You want to do what we call a passthrough. You find a buyer for your truck, agree on price & them willing to do a passthrough with the dealer. Dealer in tern handles all the paperwork & title work for them. You get trade & tax credit for amount you sold used truck.
We do the same thing with heavy equipment. I can sell with Ritchie Bros. Auction with a signed contract that the proceeds go to a Dealer I am buying new equipment from.

[Huntin]

You want to do what we call a passthrough. You find a buyer for your truck, agree on price & them willing to do a passthrough with the dealer. Dealer in tern handles all the paperwork & title work for them. You get trade & tax credit for amount you sold used truck.
We do the same thing with heavy equipment. I can sell with Ritchie Bros. Auction with a signed contract that the proceeds go to a Dealer I am buying new equipment from.

Thanks, good idea. It seems like with the price of trucks these days, I could ask for more on the trade in if they won't come down off asking price. It's crazy how much trucks cost these days.