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Hey all,
I’m trying to wrap my head around the tax on purchase with and without a trade. From what I’ve read, I would need to pay 6.25% of the purchase price, so that would be $2375 on a $38K purchase. If I get $28K on my trade, I could subtract that from the taxable amount? So it would be $625 on the $10K more that the new vehicle costs instead? Is that right?
I appreciate any and all help, so I can decide if it’s more prudent to take a lowball-ish offer from a dealer vs. taking Carvana’s higher offer.
Thank you!
Laura
I’m trying to wrap my head around the tax on purchase with and without a trade. From what I’ve read, I would need to pay 6.25% of the purchase price, so that would be $2375 on a $38K purchase. If I get $28K on my trade, I could subtract that from the taxable amount? So it would be $625 on the $10K more that the new vehicle costs instead? Is that right?
I appreciate any and all help, so I can decide if it’s more prudent to take a lowball-ish offer from a dealer vs. taking Carvana’s higher offer.
Thank you!
Laura
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