Sales tax implications on a trade help?

[GetReel]

If you were to send your boat from lets say NJ, as a trade plus cash, to North Carolina, what would be the sales tax math?....does the seller in North Carolina and the seller in NJ each pay thier own respective state tax....how is the trade value handled...? I would move up, they would move down....

I never done this before....thanks for any assist.

[KenB]

I think you pay the tax based on stated value of the boat when you go to register. That is what I did. To transfer title, you need to have and address and pay some tax.

[mnwnvc]

In NY the buyer would pay the sales tax at the time of registration. The seller would not collect or pay. I did purchase a boat and asked the seller to write two receipts, One for the motor and one for the boat. Upon registration I only payed sales tax on the boat. The two receipts allowed me to insure the boat for it's full boat and motor value. Not sure on the trade plus cash aspect.

M

[asdfhood]

In S. C. you have to pay sales taxes when you register your boat. If a trade in is involved your sales tax is on the amount of the boat less the allowance for the trade, IE the amount of cash monies involved. The tax is not collected by the seller unless it is a registered dealer in state.

[Fr. Frank]

In Florida, you only pay sales tax of the negative difference in value between trade items. If you trade your boat plus $1K for another boat, you only pay tax on the $1K.

OTOH, if you trade with a positive difference in trade value, you pay no sales tax, but you have to claim the cash difference you received as taxable earned income at income tax time. Florida, fortunately, has no state income tax.

Either way, you have to pay the state title and registration fees, which just doubled last month.