Submitted by [deleted] t3_z60y7o in massachusetts
otm_shank t1_ixzji5u wrote
Reply to comment by axle_demon in Do both buyer and seller pay tax for private party sales of vehicle? by [deleted]
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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