# Financed trade in on taxes in texas

**URL:** <https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989>\
**Category:** Ask the Hackrs\
**Tags:** tx, bmw, tax\
**Created:** [June 6, 2020, 1:40pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989 "2020-06-06T13:40:11Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![Johndeere18](https://leasehackr.b-cdn.net/letter_avatar/johndeere18/32/5_5575768a8748004e209b776fc1b2916d.png) [@Johndeere18](https://forum.leasehackr.com/u/Johndeere18)\
**Post date:** [June 6, 2020, 1:40pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/1 "2020-06-06T13:40:11Z")

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I have a trade in that is financed in Texas worth about 30k. How exactly does this effect the sales tax calculation if I’m trading in to get a lease? I think I get a break on the sales tax, but not positive.

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**Author:** ![derekoh1991](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/derekoh1991/32/198657_2.png) [@derekoh1991](https://forum.leasehackr.com/u/derekoh1991)\
**Post date:** [June 6, 2020, 1:49pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/2 "2020-06-06T13:49:03Z")

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You don’t get tax credit on lease.

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**Author:** ![Johndeere18](https://leasehackr.b-cdn.net/letter_avatar/johndeere18/32/5_5575768a8748004e209b776fc1b2916d.png) [@Johndeere18](https://forum.leasehackr.com/u/Johndeere18)\
**Post date:** [June 6, 2020, 2:03pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/3 "2020-06-06T14:03:44Z")

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well that was easy… thank you

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**Author:** ![derekoh1991](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/derekoh1991/32/198657_2.png) [@derekoh1991](https://forum.leasehackr.com/u/derekoh1991)\
**Post date:** [June 6, 2020, 2:17pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/4 "2020-06-06T14:17:14Z")

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Unless the leasing companies allow tax credit, of course

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**Author:** ![valek.jw](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/valek.jw/32/109883_2.png) [@valek.jw](https://forum.leasehackr.com/u/valek.jw)\
**Post date:** [June 6, 2020, 7:48pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/5 "2020-06-06T19:48:01Z")

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I thought if you are trading a car into a dealer that you own or traditionally financed then you would only pay the sales tax on the difference between the value of the 2 vehicles (In Texas)? I know if you are trading a leased vehicle in Texas then you do not receive any tax benefit. Am I incorrect? If I understand OP’s question he owns or has a traditional note on the vehicle he is trading.

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**Author:** ![mllcb42](https://leasehackr.b-cdn.net/letter_avatar/mllcb42/32/5_5575768a8748004e209b776fc1b2916d.png) [@mllcb42](https://forum.leasehackr.com/u/mllcb42)\
**Post date:** [June 6, 2020, 7:49pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/6 "2020-06-06T19:49:08Z")

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> [@valek.jw](#):
>
> I thought if you are trading a car into a dealer that you own or traditionally financed then you would only pay the sales tax on the difference between the value of the 2 vehicles?

Different states do this differently. Some don’t at all.

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**Author:** ![valek.jw](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/valek.jw/32/109883_2.png) [@valek.jw](https://forum.leasehackr.com/u/valek.jw)\
**Post date:** [June 6, 2020, 7:50pm UTC](https://forum.leasehackr.com/t/financed-trade-in-on-taxes-in-texas/260989/7 "2020-06-06T19:50:44Z")

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I made a correction to my statement. Just for clarity.