taxes on trades

[toby1]

i am selling my boat and i have a person interested in trading me a car for it .the question is how does the tax work on deal like this if no money changes hands ?thanks for any help .

 

[mr_fusion_ho]

In the State of Wisconsin on an even trade there would be no tax due.

 

[snowfish]

Call your local DMV. Minnesota has a minimum sales tax. Not sure about Wisconsin. Pretty much a given that they'll get you for something.

 

[polarisrider1]

In Michigan you pay taxes on the book value at trade unless you are a relative of the other person. This is only because they "got you" with titles and registrations. If you was trading a riding lawn mower for a snow thrower even up you have no worries. You will need insurance and a plate for the car so they "got you".

 

[ezra]

upgrading to a lund

 

[blutooth]

If it is an even trade no tax is due in Wisconsin (I am assuming you are from Wisco based upon your profile). Make sure you have a good bill of sale showing that nothign was paid so you are covered in the case that they ask questions, but nothing is due. Here is the form on the Wisconsin DMV website: http://www.dot.wisconsin.gov/drivers/forms/mv1.pdf

In the tax calculation section, fill in the value of the vehicle, and then fill in the value of the trade in allowance. The difference between those 2 numbers is what you pay sales tax on. If it is zero, so be it.

Good luck!

 

[catman66]

blutooth, good luck with the no money exchanging hands on a even trade. I once made an even trade , a snowmobile for a washing machine, no money exchanged hands, but that was not good enough for the state. They kept hounding me, so i put a dollar in an envelope and sent it in and never herd from them again. I even told them it was an even trade.