Quote:
Originally Posted by Nole89
Tax credit? Not aware there was one. Please elaborate. I'll check with my wife too, she's a CPA.
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Not exactly a tax credit, but...
Let's say the you will be paying $90,000 for the new car. If you sell your car outright and buy the new one, you will pay sales tax on the full $90K. If you trade in your car and get the $57K trade allowance, you will only pay sales tax on the difference ($33K). That means your out-of-pocket cash could amount to +/- $4000 more without a trade.
I am sure that your CPA will inform you that you will have to get that much more in a private sale to even break-even.
So, it is not a tax credit, rather a tax savings.