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axle_demon t1_ixz78rr wrote

Reply to comment by axle_demon in Do both buyer and seller pay tax for private party sales of vehicle? by [deleted]

Oh, and seller is supposed to declare as income... so seller does technically get taxed, just not sales tax.

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otm_shank t1_ixzji5u wrote

Surely only if there was a capital gain, which would be pretty rare outside of vintage cars or a crazy used car market (admittedly, we have had that recently).

In fact, if you sell to a dealer as a trade-in while buying another car, not only would you not pay income tax on it, but you essentially get a tax credit because the sales tax on the new car is based on the after-trade price.

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