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axle_demon t1_ixz70bj wrote

Reply to comment by Direct-Pressure-7452 in Do both buyer and seller pay tax for private party sales of vehicle? by [deleted]

This is correct, but I'd add two things. One, if you buy from a dealer or auction, that is the price used for sales tax calcs, regardless of kbb. Two, the person entering into registry system has discretion, which is not only registry employees but also includes people such as insurance agents who have registry access.

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axle_demon t1_ixz78rr wrote

Oh, and seller is supposed to declare as income... so seller does technically get taxed, just not sales tax.

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otm_shank t1_ixzji5u wrote

Surely only if there was a capital gain, which would be pretty rare outside of vintage cars or a crazy used car market (admittedly, we have had that recently).

In fact, if you sell to a dealer as a trade-in while buying another car, not only would you not pay income tax on it, but you essentially get a tax credit because the sales tax on the new car is based on the after-trade price.

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