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YOUR RESEARCHDealer "In and Out" tax question
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Use on another car
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Suggestion · Original poster
I'll have a credit of $76K at the dealer to use on another car.
Leading evidence: 'Use on another car' (no explicit attributable resolution; this is a reported action or suggestion). Across 1 matching discussions, The most frequently discussed action is 'Use on another car' (1 discussions). For that action, 0 discussions report a resolution and 0 report an unsuccessful attempt. No action has an explicit, attributable resolution report under the current rules. These are forum reports and suggestions, not a confirmed diagnosis.
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Suggestion
I just bought mine privately (via a dealer) so that the seller could pick up his new car using the same logic you presented.
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Ok. I'm trading in my Turbo today officially. I'll have a credit of $76K at the dealer to use on another car. I have to leave it there to get a tax credit on the new M5 I've ordered.
In Texas, you only pay sales tax on the difference between trade and purchase. So if you buy a 90K bmw and trade in a 76K car, you pay sales tax only on the 14k difference. That's like getting another $4,750 for my car, or selling it privately for $80,750. Not bad...
Anyway, what if I were to trade in my car. Decide against the M5 and want to get something from anothe dealer not related to the one I'm workingn with for BMW.
For example, I decide on a Benz of some type. Is there a way to transfer that credit after the trade in?
If not, maybe have the BMW dealer actually buy it from Benz dealer and sell to me so I get the credit?
I ask because there's a slight chance this may happen and I just want to know my options.
Feb is a long way away, and who knows what happens between now and then when the M5 rolls in.
Hi Scott
Have you actually signed the title over to the dealer yet? If not, you could hold onto the car until the new one is ready and then do the transaction. I just bought mine privately (via a dealer) so that the seller could pick up his new car using the same logic you presented.
Good luck.
I'm from Texas and can tell you that I have bought many cars and can offer 2 pieces of advice:
1. First would be to call the TXDOT in Austin this very question.
2. Read the fine print on the title app....if I am not mistaken it asked what you paid for the car and what your trade in is so you can determine the difference. To me that says you have to buy the car through the dealer you trade it in to. If you buy your new car from another dealer then your TT goes from "trade in" to "private sale" between you and the dealer you didn't buy from.
Try looking around in the following link:
http://www.dot.state.tx.us/
I have 3 cars right now and ALL are titled in Texas and that website gave me quite a few answers. And when it didn't have what I looked for I called them and they were very helpful.
it has to stay with the same dealer. it has to do the transaction in and out of HIS tax liability to the irs. he declares his nett sales. also i understand i has to happen virtually simultaniosly in the tax period(month).
hope this helps.
