In Missouri, there’s a 180 tax rule that says if you sell your car and buy a new one within 180 days, it functions the same as if you’d traded it in (meaning you only pay tax on the difference).
My current car is a lease (Honda) meaning I can only “sell” it to Honda or Acura dealers. If I were to sell it to a Honda dealer, then buy a car from another dealer, would I be eligible for that tax credit? Things get a little fuzzy for me on this end.
Thanks much!
Leases don’t usually count because it’s owned by the bank, not you. You aren’t selling it, you are giving the dealer an opportunity to buy it from Honda.
But if you get a credit, power to you!
Buy the car out. Sell it to highest bidder without any restrictions. The TTL you’ll pay won’t be wasted because:
That sale will then cause the tax benefit to apply to your next purchase.
How may I claim my tax credit for my original unit when I sell it to another person and purchase a replacement rather than use it as a trade-in for a replacement?
If you sell your original unit within 180 days before you purchase your replacement, you may present to the License Office a copy of your bill of sale for the original unit. You will be given credit against the tax due on the replacement unit. If you sell your original within 180 days after you purchase your replacement unit or if you sold the original within 180 days prior to purchasing the replacement and you did not receive the tax credit when you titled your replacement, you may file a request for refund with the Missouri Department of Revenue.
I would call DOR regarding leases.
I thought about that. I wonder if I’ll need to buy it out and trade it in.
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