Now I know when you trade in a vehicle you pay the tax on the difference between the cost of the the vehicle you are buying and the value of the car you are trading in. But what if the car you are trading in has a higher value than that of the vehicle you are buying.
The real world example here is that I will most likely be trading in my '04 Subaru STi for an '01 Subaru Outback (painful decision, but need a more "family" vehicle)at the dealer. The STi is valued very roughly at 40K, and the Outback is priced at 21K. So the car I am trading in has a much higher value than the car that I am trading in for.
Any idea how the whole tax thing works on that? So using the above equation, (car cost - trade in value) * tax = taxes paid, I guess then the tax man should be paying me then huh
?
(Message edited by MYSti on September 23, 2004)
