Can a person trade in more than one motor vehicle on the purchase of a new motor vehicle and deduct the trade-in value of both vehicles?
Yes. The combined value of the two or more vehicles given in trade can be used to reduce the “price” of the new motor vehicle being sold by the new motor vehicle dealer. If the value of the traded in vehicles is less than the “price” of the new vehicle, tax is due on the difference. If the value of the traded in vehicles equals or exceeds the “price” of the new vehicle, no tax is due as the “price” would be reduced to zero. (Note: The “price” for calculating sales tax on the new vehicle cannot be less than zero.
Yes. The combined value of the two or more vehicles given in trade can be used to reduce the “price” of the new motor vehicle being sold by the new motor vehicle dealer. If the value of the traded in vehicles is less than the “price” of the new vehicle, tax is due on the difference. If the value of the traded in vehicles equals or exceeds the “price” of the new vehicle, no tax is due as the “price” would be reduced to zero.
