Sales Tax Question - Buying and selling

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Hatthornhaley

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Jul 30, 2019
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We are the owners of a 2013 Jayco Seneca 37FS, superC motorhome.  We've been looking to change to a diesel pusher and have found a private seller listing for a Phaeton.  The Phaeton is priced above the value of our Seneca.  Our vehicle is registered in Texas and the vehicle we are looking to purchase is in Texas. 

We do not want to bother with selling our motorhome privately.  We prefer to sell it wholesale as is. 

If we were to trade our coach in to a retailer, we would have the sales tax benefit when purchasing a coach, even at a pre-owned RV retailer.  We are buying a new coach and selling our coach to a dealer/wholesaler.  Both transactions would occur in the same state.  How can we take advantage of the tax savings which generally result from a trade in?
 

Isaac-1

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This is a question you need to ask of the Texas DMV, tax credits and tax obligations are different in every state.  As to selling your coach, have you considered the consignment sales route, one of the largest consignment dealers in the US is located in Texas (PPL),  also I think Motorhomes of Texas in Nacogdoches does some consignment sales, though they mostly deal in upper end class A's
 

Larry N.

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Hatthornhaley said:
Any thoughts on the Montana LLCs?
Many (most?) states have gotten wise to folks doing that to avoid state taxes. I know that Colorado, for instance, has prosecuted a number of folks for doing just that, when their residence is actually in Colorado. Of course if your legal residence is in Montana, that's a different thing.
 

Gary RV_Wizard

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I don't think you can get the exchange credit on the sales tax if the two transactions are separate, but only the Texas DMV and sales tax offices can give you the definitive answer.
Most states assess sales or use tax on the net amount of the transaction, so a trade-in value only comes into play as part of a single transaction. I don't see anything inthe Texas vehicle tax summary about a credit for a recent but seprate transaction, but the summary may not have all the details. See  https://comptroller.texas.gov/taxes/motor-vehicle/sales-use.php
 

KandT

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Hatthornhaley said:
We are the owners of a 2013 Jayco Seneca 37FS, superC motorhome.  We've been looking to change to a diesel pusher and have found a private seller listing for a Phaeton.  The Phaeton is priced above the value of our Seneca.  Our vehicle is registered in Texas and the vehicle we are looking to purchase is in Texas. 

We do not want to bother with selling our motorhome privately.  We prefer to sell it wholesale as is. 

If we were to trade our coach in to a retailer, we would have the sales tax benefit when purchasing a coach, even at a pre-owned RV retailer.  We are buying a new coach and selling our coach to a dealer/wholesaler.  Both transactions would occur in the same state.  How can we take advantage of the tax savings which generally result from a trade in?

In PA the dealer has to temporarily take ownership of the Phaeton and then turn round and sell it to you with your's as a trade. 

I bought a used car that the owner had me meet him where he was buying his new car.  The car dealership took temporary possession of the car and then sold it to me "as is" and the new car buyer didn't have to pay the sales tax on the used car portion.
 

Velociraptor

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I know in Texas when I have sold cars / trucks if you dont trade in at the dealership you lose the tax benefit. The dealerships know this and low ball the trade ins while places like Carmax typically give a little more to overcome this issue.  I assume its the same for RVs...ie you will need to sell and buy at the same place.
 

Gary RV_Wizard

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In PA the dealer has to temporarily take ownership of the Phaeton and then turn round and sell it to you with your's as a trade. 
That would work anywhere, but you would have to pay the dealer something for his effort, paperwork, and the liability he assumes as it passes thru his hands. Might be cheaper to pay the sales tax difference...  :-\
 
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