Taxes on an in-state upgrade

[Collee]

I apologize in advance for the totally ignorant question.

Is the tax on an upgrade based upon;

- The difference in price of the trade-in and the upgrade?
- >trade-in stone was "surrendered" in September and currently have a store credit

- The price of the upgrade?

I am pretty sure that it is (unfortunately) based on the price of the upgraded stone but hoping to hear otherwise.

 

[rocks]

i''d do some further research. recently we traded in a car and bought a new one. the sales tax was calculated based on the differential between the cost of the new car and the value of the trade in. the difference here may be that the trade in and purchase were on transaction. don''t know if that matters.

 

[Todd Gray]

In my experience, the tax is based on the amount of the total transaction (upgrade) and the item traded in is considered a "cash payment" but I''m sure that this will vary from state to state - so recommend contacting the state tax authority in your state of residence. I will say that it makes sense to only tax the difference if sales tax was already collected by your state of residence for the initial transaction, but who said anything about the tax system made sense

 

[Karl_K]

It will vary from state to state. Some states you pay tax on the full amount and others the difference.

 

[Collee]

I live in the money hungry state of NY (Long Island). LOL! I know I should really be asking Jonathan this question but don''t want to bother him on his day off. The hard working man deserves a day or two of peace and relaxation.