Trading CUT For A Pickup--Sales Tax?

[npalen]

What would be the sales tax implications of trading a compact tractor for a pickup of more or less equal value?

 

[4570Man]

Not a CPA but in theory none since trades aren’t taxable.

 

[cathy liebchen]

Should work fine

 

[ZTMAN]

What would be the sales tax implications of trading a compact tractor for a pickup of more or less equal value?

In my state, PA, sales tax would be due on the fmv of the vehicle when the vehicle was titled and registered.

 

[npalen]

This would be in Kansas. It would seem that there would have to be some proof of the trade. Perhaps a bill of sale for the tractor stating that the proceeds consisted of the pickup?
Seems like the county treasurers office would look over the top of their bifocals.

 

[MossRoad]

On Wednesday I sold my kid a car for $1 at the DMV office to change the title from me to them. I could have also just written GIFT in the sale price. In Indiana, GIFT is not taxable. Tax on $1 is 7 cents in Indiana. Either way, the title got transferred, which is required on an automobile. I don't think tractors have titles.

So, I'd guess that if you buy his car for $1 and sell him the tractor for $1 and have receipts for both, that would be that, but who knows what laws apply in your state?

 

[Roadworthy]

You'd have to determine the laws in Kansas. They vary by state with some states not even having sales tax. In Washington you may get tax credit if trading in at a dealer. If trading with an individual there would be no credit.

 

[K5lwq]

Sales Tax should be on the difference in value only. However, in Kansas it might be cheaper to just drive the tractor. My son lived there for about 4 years and had to pay $1,200 each year for registration on his truck! Now that he has moved back to Texas it is only about $90.00.

 

[mrmikey]

......had to pay $1,200 each year for registration on his truck

Holy crap, really that is robbery. I'm not going to complain about my $250 for two years then in NS.
I will complain tho about having to pay tax on the book value of a vehicle not what you paid for it. You get a smokin' deal on a used vehicle for $10K, book value is $14K that's what you pay tax on.

 

[K5lwq]

Holy crap, really that is robbery. I'm not going to complain about my $250 for two years then in NS.
I will complain tho about having to pay tax on the book value of a vehicle not what you paid for it. You get a smokin' deal on a used vehicle for $10K, book value is $14K that's what you pay tax on.

I know! It used to drive me crazy going to see him knowing what he paid in registration then traveling there on I-35. When you cross the Kansas line the Interstate becomes a toll road! I would complain the whole trip how ridiculous it was for them to charge what they do for registration and then charge to drive on the highway!