Hey guys! I need some help figuring out some tax stuff.

So I know in Tennessee if I trade in my car at the same dealership I am buying a new one, I only pay taxes on the difference. (IE: Buy $40k car, trade in for $30k, pay taxes on $10k).

Now, if the purchase and trade in is done outside of the state (in a Georgia dealership for example), does the same rule apply? Both cars will be titled in Tennessee.

Thanks for the help!

-George

yes, it is the same no matter where you go. You already paid tax on the trade in vehicle. Perk to trading in versus selling out right

yes, it is the same no matter where you go. You already paid tax on the trade in vehicle. Perk to trading in versus selling out right
Awesome. Thanks for the clarification!