Posted By: ETXfisher91
Verification please - 02/02/18 11:14 PM
I'm looking at a bass boat right now... But I am waiting for mine to sell... I really don't want to wait so I'm thinking of the trade in method but want some clarification first...
If I trade in, the boat dealer will pay my other boat off and I will have the leftover balance to pay off correct?? Say I trade in 13,000 towards a 20k boat. I have 7,000 left to pay on the new boat?
Posted By: 361V
Re: Verification please - 02/02/18 11:27 PM
Ya, it’s really that simple....assuming they are actually giving you your anticipated trade in of $13,000 PLUS your payoff on your used trade in boat. You will still owe taxes on the balance of the $7000 and the title and licensing fees.
Posted By: ETXfisher91
Re: Verification please - 02/02/18 11:35 PM
Okay lol I thought so just seemed to simple. I appreciate it!!!
Posted By: pchapin
Re: Verification please - 02/03/18 12:20 AM
You will own sales tax on $20,000 not on $7,000.
Posted By: Jimfishes
Re: Verification please - 02/03/18 12:43 AM
If your boat was paid off, it would be as simple as them subtracting the trade price from the selling price of the new boat. Example:
$20,000-sale price
-$13,000-trade
--------------
$7,000 difference
+ TTL....
--------------
$7,500 total drive out
But if you have a lien on your current boat it is not that simple....
If they give you $13,000 trade but you owe $10,000 for example, that is a $3000 down payment off the $20,000...
$20,000 price
-$13,000 trade
---------
$7,000 difference
+$500 ttl
---------
$7,500 total difference
+$10,000 payoff balance (what ever your pay off is)
---------
$17,500 total due (will vary depending on your po)
Posted By: Jimfishes
Re: Verification please - 02/03/18 12:46 AM
You will own sales tax on $20,000 not on $7,000.
You only pay taxes on the trade "difference"
Posted By: Clark3
Re: Verification please - 02/03/18 01:02 AM
You will own sales tax on $20,000 not on $7,000.
Not true. You only pay races on the difference in trade in and new boat price. One of the advantages to trade in versus selling outright