7+ Easy Ways How Does Tax Credit Work On Car Trade In
7+ Easy Ways How Does Tax Credit Work On Car Trade In. If you're buying a car for $40,000 and your trade in is worth $20,000, you only have to pay tax on the difference, which in this case is $20,000. In this case it should work out as:
/the-basics-of-shorting-stock-356327-v2-5bc4c22346e0fb0026b436d3.png)
In this case it should work out as: This should be the dollar amount which you could receive a sales tax credit for ([email protected]% tax rate). The dealer will take in your car, pay off your existing lender, and give you the remaining $2,000 to either keep or put toward your purchase.