Trade-in and Tax question
When buying a car and trading in the vehicle, are the following the same or not:
(a) pre-tax: purchase price of 20000 with trade-in price of 15000
(b) pre-tax: purchase price of 17000 with trade-in price of 12000
I know that tax is added to the purchase price, and my guess is that the trade-in price probably has no effect on the overall tax I'll be charged with. So I'm guessing the second deal is better?
Thanks.
(a) pre-tax: purchase price of 20000 with trade-in price of 15000
(b) pre-tax: purchase price of 17000 with trade-in price of 12000
I know that tax is added to the purchase price, and my guess is that the trade-in price probably has no effect on the overall tax I'll be charged with. So I'm guessing the second deal is better?
Thanks.
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