Hello Hackrs!
Can you use a trade-in to offset sales Tax on a Lease in TX? I aim to use my trade-in to lower my sales tax burden and ask that my equity be returned to me instead of being applied toward the lease. I this possible?
If the vehicle you are trading is owned outright by you, or is traditionally financed then it will reduce your sales tax burden.
Yes, the vehicle is owned outright
Then you will pay sales tax on the difference between the value of the new car and the trade in.
Before you trade be sure you check your car’s value with carmax, carvana, autonation, etc. Sometimes a dealer will low ball your trade. In that situation your savings have been eliminated if they are giving you thousands of dollars less than someone else.
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