[ssmith96]

Has anyone done a private party trade here in NY.

Im thinking about trading my 07 328xi Sedan for an 07 328xi coupe.

I really am not interested in paying thousands in tax for what is an even trade.

I would call the DMV but they are closed today and tomorrow so I figured I would ask in here.

Can you say that there was no cash exchanged and that it was a trade? Ive heard no..

Can we write up a bill of sale for $1,000 and get taxed on that or will they just tax on book value anyway?



If anyone can help me out with this question I would appreciate it.

Thanks!
Scott

[fazman]

You could do a trade for private party and save tax with the other buyer?

putting a lower value might trigger red flags if the value is extremely off, they know u r trying to cheat on taxes.

maybe selling the car at 15% of the edmunds used price might be a better bet. Avoid very round numbers, to make it look like some negotiation took place (like say $2300, as opposed to $2000 or $2250)

[ssmith96]

Originally Posted by fazman

You could do a trade for private party and save tax with the other buyer?

putting a lower value might trigger red flags if the value is extremely off, they know u r trying to cheat on taxes.

maybe selling the car at 15% of the edmunds used price might be a better bet. Avoid very round numbers, to make it look like some negotiation took place (like say $2300, as opposed to $2000 or $2250)

Maybe

I just find it annoying to have to pay tax on a transaction where there truly is no money exchanging hands.

I don't know what nys does in the case of trades where there is no money moving

[fazman]

Originally Posted by ssmith96

Has anyone done a private party trade here in NY.

Im thinking about trading my 07 328xi Sedan for an 07 328xi coupe.

I really am not interested in paying thousands in tax for what is an even trade.

I would call the DMV but they are closed today and tomorrow so I figured I would ask in here.

Can you say that there was no cash exchanged and that it was a trade? Ive heard no..

Can we write up a bill of sale for $1,000 and get taxed on that or will they just tax on book value anyway?



If anyone can help me out with this question I would appreciate it.

Thanks!
Scott

Why not ask the NY DMV what the procedure is to trade cars with a friend. What are the costs and taxes involved when doing an even trade? I prefer to just go to the source of truth for these simple matters.

[NYCLCI]

If you take a look at form DTF-80x (can't remember the last digit, it can be found on the dmv website), which is the sales tax form, you can see that legally you will be taxed on value of goods traded for the vehicle (goods being your vehicle). The way to circumvent this would be to gift the other person the car and have them gift you theirs (last section of that form, seller certification that it was a gift or a sale significantly below market value).

[JDG]

Dont know if this will help, but in GA you get taxed on vehicle value minus trade. Since your trading vehicles of equal value, you should show your "trade in" matched your "purchase" price. All you should have to pay is a tag transfer fee..