# Taxes on trades **URL:** \ **Category:** Shift518 Automotive\ **Created:** [November 16, 2012, 4:39pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511 "2012-11-16T16:39:34Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Intrnlstorm](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/intrnlstorm/32/6383_2.png) [@Intrnlstorm](https://forums.speedlife.net/u/Intrnlstorm)\ **Post date:** [November 16, 2012, 4:39pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/1 "2012-11-16T16:39:34Z")
I’ve been looking for a definite answer but all I get is a lot of “I think” or “it should be this” so I need someone that has been through it. I have a car, rx7 Ls1 swap that I will price at $15,000. There is a BMW M3 that is at $17,000. We want to make a fair even trade but I don’t want to pay taxes on $17,000! What are my options? I know if it was a dealer I would only pay taxes on the $2,000 but this is private sale. Thanks, Joel ---
**Author:** ![Cossey](https://avatars.discourse-cdn.com/v4/letter/c/3ec8ea/32.png) [@Cossey](https://forums.speedlife.net/u/Cossey)\ **Post date:** [November 16, 2012, 4:46pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/2 "2012-11-16T16:46:22Z")
> [@Snky Snky Starbucks Meet Sunday July 6th!!!!!!!!!!!!!](https://forums.speedlife.net/t/snky-snky-starbucks-meet-sunday-july-6th/50861/52): > > I’ve been looking for a definite answer but all I get is a lot of “I think” or “it should be this” so I need someone that has been through it. I have a car, rx7 Ls1 swap that I will price at $15,000. There is a BMW M3 that is at $17,000. We want to make a fair even trade but I don’t want to pay taxes on $17,000! What are my options? I know if it was a dealer I would only pay taxes on the $2,000 but this is private sale. > > Thanks, > Joel You pays the taxes on the M3, he pays taxes on the RX7. [http://dmv.ny.gov/forms/dtf802.pdf](http://dmv.ny.gov/forms/dtf802.pdf) There’s the form. Section 5, question 1c. “c. Value of property given, traded, or swapped, or services performed instead of cash payment…” You sure the vehicles aren’t each worth $5,000 due to some body damage or improper running? (hint, hint) ---
**Author:** ![PJB](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/pjb/32/6389_2.png) [@PJB](https://forums.speedlife.net/u/PJB)\ **Post date:** [November 16, 2012, 4:46pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/3 "2012-11-16T16:46:58Z")
Pretend you bought it and fill out a bill of sale for a low amount. Say you bought it for $500 and only pay taxes on $500. ---
**Author:** ![ds50r](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ds50r/32/3491_2.png) [@ds50r](https://forums.speedlife.net/u/ds50r)\ **Post date:** [November 16, 2012, 5:01pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/4 "2012-11-16T17:01:22Z")
Private sale… As long as you two agree on the “price” you write down on the DMV fourm and bill of sale who will be the wiser… ---
**Author:** ![ds50r](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ds50r/32/3491_2.png) [@ds50r](https://forums.speedlife.net/u/ds50r)\ **Post date:** [November 16, 2012, 5:02pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/5 "2012-11-16T17:02:42Z")
Haha I see we are all on the same wave length ---
**Author:** ![usmc2801](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/usmc2801/32/6387_2.png) [@usmc2801](https://forums.speedlife.net/u/usmc2801)\ **Post date:** [November 16, 2012, 6:04pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/6 "2012-11-16T18:04:57Z")
DMV does have the right to charge you tax on the book value of the car especially if they feel you put an extreme lowball price. ---
**Author:** ![yota](https://avatars.discourse-cdn.com/v4/letter/y/76d3ee/32.png) [@yota](https://forums.speedlife.net/u/yota)\ **Post date:** [November 16, 2012, 6:12pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/7 "2012-11-16T18:12:06Z")
I remember buying and selling vehicles for “$1” back home since if it was a “gift” you were still responsible for a stupid amount of taxes. They fixed it now though where in NC they just charge you taxes on the tax value of the vehicle. That being said, it’s still only like 1-1.5% rather than whatever retarded amount NY charges. For example, when I bought my T/A, I think I only paid ~$140 for tax, tags, and title at the DMV vice almost $700 for the BMW here in NY… ---
**Author:** ![Reckone](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/reckone/32/6324_2.png) [@Reckone](https://forums.speedlife.net/u/Reckone)\ **Post date:** [November 16, 2012, 8:25pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/8 "2012-11-16T20:25:45Z")
Fill out DMV form for tax on both vehicles. As long as you both agree. You can put down you bought it for only $1.00. I have never paid over $100 for any of the 25 cars I have owned according to dmv. No questions asked. It’s not your problem on you getting a great deal. ---
**Author:** ![aero93](https://avatars.discourse-cdn.com/v4/letter/a/a4c791/32.png) [@aero93](https://forums.speedlife.net/u/aero93)\ **Post date:** [November 16, 2012, 9:18pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/9 "2012-11-16T21:18:49Z")
i htought you only paid taxes on amout of money exchanged in your case the two thousand dollars would be taxed but not the value of the cars because its an even exchange. I did this once ( even trade ) and just had to pay title and reg no sales tax on cars worth over 13k ---
**Author:** ![slwrthnu](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/slwrthnu/32/6296_2.png) [@slwrthnu](https://forums.speedlife.net/u/slwrthnu)\ **Post date:** [November 16, 2012, 10:35pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/10 "2012-11-16T22:35:39Z")
yea i might not be remembering right but i don’t think i payed taxes when i swapped my mr2 for the rx7 since it was an even swap. ---
**Author:** ![JSEnclosures](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jsenclosures/32/6678_2.png) [@JSEnclosures](https://forums.speedlife.net/u/JSEnclosures)\ **Post date:** [November 17, 2012, 6:04pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/11 "2012-11-17T18:04:28Z")
You’d pay taxes on 2000. It’s pretty clear on the affadavid form, download it from the web ---
**Author:** ![DUKE\_LADUKE](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/duke_laduke/32/6317_2.png) [@DUKE\_LADUKE](https://forums.speedlife.net/u/DUKE_LADUKE)\ **Post date:** [November 17, 2012, 6:33pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/12 "2012-11-17T18:33:47Z")
Write the sales for a low amount or as a gift . Thats what I did for my cars. ---
**Author:** ![Ollie](https://avatars.discourse-cdn.com/v4/letter/o/a87d85/32.png) [@Ollie](https://forums.speedlife.net/u/Ollie)\ **Post date:** [November 17, 2012, 7:34pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/13 "2012-11-17T19:34:21Z")
Like-kind exchange. You pay tax on the spread. Either way I doubt you’d have an issue since I’ve never had anyone at the dmv give a single fuck but you might as well play it safe and “buy” the m3 for cheap and “sell” him the rx7 for cheap. Or you might be stuck proving to the dmv why your 93 mazda is only worth 2k less than an e46 m3. ---
**Author:** ![Wayne64SS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wayne64ss/32/6365_2.png) [@Wayne64SS](https://forums.speedlife.net/u/Wayne64SS)\ **Post date:** [November 19, 2012, 6:51am UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/14 "2012-11-19T06:51:14Z")
you are legally responsible for the taxes on the entire value of the car you traded… i know this because it killed a deal last year for me on a TT car. ---
**Author:** ![Reckone](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/reckone/32/6324_2.png) [@Reckone](https://forums.speedlife.net/u/Reckone)\ **Post date:** [November 19, 2012, 7:53am UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/15 "2012-11-19T07:53:33Z")
Maybe its me but why are people making this more difficult then it is. Put down you bought the car under book value, write it in for a few hundred bucks or what ever you want to pay tax on ( I personally never bought one over $100 to dmv). You’ll pay tax on ONLY that amoount. DMV isn’t going to give two shits about your 10+ year old car. Do not put it down as gift or trade, then you pay book value on the car. I’v seen people do this thinking there not paying anything, and they pay up the ass. If they care to ask why so cheap, you bought it as a roller. Simple in and out deal. ---
**Author:** ![KrazyKid](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/krazykid/32/6371_2.png) [@KrazyKid](https://forums.speedlife.net/u/KrazyKid)\ **Post date:** [November 19, 2012, 8:15am UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/16 "2012-11-19T08:15:44Z")
yeah its not like your registering a F430 for $1000. Check the box for paid less than fair mkt valve, fill out section 6 and be on your way. They can question it, but they never do. The people behind the counter are not “car” people, they wont know what its worth. and how would you be able to prove it anyway? DMV going to come to your house and inspect the car?? ---
**Author:** ![Reckone](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/reckone/32/6324_2.png) [@Reckone](https://forums.speedlife.net/u/Reckone)\ **Post date:** [November 19, 2012, 9:13am UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/17 "2012-11-19T09:13:23Z")
> [@FS: 2000 Black GTP Coupe, 74 k, $6900](https://forums.speedlife.net/t/fs-2000-black-gtp-coupe-74-k-6900/51087/9): > > yeah its not like your registering a F430 for $1000. Check the box for paid less than fair mkt valve, fill out section 6 and be on your way. They can question it, but they never do. The people behind the counter are not “car” people, they wont know what its worth. and how would you be able to prove it anyway? DMV going to come to your house and inspect the car?? Exactly! Tell them it needed an engine and they will wonder why you even paid “$200” for it. ---
**Author:** ![Wayne64SS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wayne64ss/32/6365_2.png) [@Wayne64SS](https://forums.speedlife.net/u/Wayne64SS)\ **Post date:** [November 19, 2012, 12:01pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/18 "2012-11-19T12:01:57Z")
that works with junk hondas and shit… not so much with more expensive cars. ---
**Author:** ![TurboTravis](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/turbotravis/32/6406_2.png) [@TurboTravis](https://forums.speedlife.net/u/TurboTravis)\ **Post date:** [November 19, 2012, 12:35pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/19 "2012-11-19T12:35:31Z")
> [@FS: 2000 Black GTP Coupe, 74 k, $6900](https://forums.speedlife.net/t/fs-2000-black-gtp-coupe-74-k-6900/51087/9): > > yeah its not like your registering a F430 for $1000. Check the box for paid less than fair mkt valve, fill out section 6 and be on your way. They can question it, but they never do. The people behind the counter are not “car” people, they wont know what its worth. and how would you be able to prove it anyway? DMV going to come to your house and inspect the car?? DMV questioned the sale of my Viper when I sold my Viper for “20K” in 2004. I had to verify via additional paperwork that ‘the engine was blown’. ---
**Author:** ![Wayne64SS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/wayne64ss/32/6365_2.png) [@Wayne64SS](https://forums.speedlife.net/u/Wayne64SS)\ **Post date:** [November 19, 2012, 12:47pm UTC](https://forums.speedlife.net/t/taxes-on-trades/265511/20 "2012-11-19T12:47:05Z")
exactly. [Next page](https://forums.speedlife.net/t/taxes-on-trades/265511.md?page=2)