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Old 03-13-2019, 04:37 PM  
Action
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City: Phoenix, AZ
Country: USA
Vessel Name: Enigma
Vessel Model: 1997 Wellcraft Excel 26 SE
Join Date: Mar 2015
Posts: 136
Quote:
Originally Posted by Mikala View Post
Not sure about boats (and I cannot imagine it would be different), but when you purchase a car with trade-in you pay tax on the purchase price of the car before the trade is considered. The value of the trade-in is treated as currency toward the purchase.


Now, consider you trade your house for your neighbors house. Good luck convincing your local property appraiser/tax assessor that the value of the transaction was $0.
As a reformed worker in the retail automotive field, what was described above was true for me in Washington State, Michigan and Arizona. Sales tax is calculated on the vehicle purchase price. Trade in value (of anything) is deducted from the transaction AFTER sales tax is calculated from the purchase price.

As a current worker in the Real Estate industry (in Arizona) there is no sales tax for Real Estate. (in AZ) All taxes collected on Real Estate are done so on a yearly basis called property taxes. I am pretty sure all states in the US have property taxes. Some may have some type of limited sales tax on Real Estate as well. So some one can be gifted or given Real Estate with no tax owed for the transaction. However the on going ownership of Real Estate taxes are owed.
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