I have a question about tax credit.
I'm trading to buy a X. The price on the X is $34,600. I'm trading in a car and truck. The car they are giving me $17,000 and $28,000 on the truck. I still owe $11,000 on car and $22,000 on the truck. The price after eeverything. I'll have to pay $21,400 for the X.
Where is my tax credit????

 

Your credit is that you won't pay sales tax on it. You're trading $45000 in cars on a sales price of $34600, they owe you almost $10000. Now ofcourse you or they must pay off the car and truck. Most likely, unless you pay them off and have the title, they'll pay them off to ensure clean quick title transfer.

So you're saving $34600 x sales tax rate = savings. For example if the sales tax in LA is 5% (pulled that out of the air) then $34600 x 5% = $1730 sales tax. You're not paying $1730 in taxes, therfore that's what you're saving.

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Thanks Familyride
But what about the extra tax money. The sales tax on $34,263 is $2741.04 and $45,000 is $3600.00. That is a difference of $859.00. It lookd like they owe me that difference. Here is a little more detail of what I have.

$34,058 Cash Price
+$95 D & H
+$110 Title
$34,263 Total (that's without taxes)

$28,000 trade - $20,030 payoff
$17,000 trade - $11,890 payoff
$45,000 total $13,079 net trade in

$34,263 price of X
$13,079 net trade in
$21,184 Balance (this is what I pay for the X)

 

You don't get to charge them tax. Sales Tax is paid by consumers. It would be cool if you could.