Trading cars in general - Tennessee taxes?

[JoeCollectible]

I have been frugal with my car buying and selling so far, but have never traded outright for a car. I mean a: my car for your car type trade. If I was to trade vehicles outright, will I have to pay taxes on the trade? Anyone know how to work a trade? - I am 23 and live in TN please help me. The county clerk's office is already aware of some of my questionable transactions. (I.E Friend writing $500.00 on title sale of $3500.00 car) - they made him sign an affidavit and it took me 4 months to get a title. I have bought/sold about 3 cars per year for the past 5 years and the clerk's office knows me. I can't go ask them about this trading thing or they will surely have future titles investigated again and all that crap all over.

- Thanks in advance

[earl schieb]

Hey, you ain't tryin to cheat our esteemed elected officials, are ya? http://www.jalopyjournal.com/ubbthreads/images/graemlins/shocked.gif http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif You KNOW they NEVER have enough in the budget http://www.jalopyjournal.com/ubbthreads/images/graemlins/confused.gif http://www.jalopyjournal.com/ubbthreads/images/graemlins/tongue.gif
Joe, all you need is the VIN of the trade-in(your old car) to accompany the title of the new car. Shouldn't be an eyebrow raised(unless you're tradin' a 74 Ford for a 99 Mercedes) All you should be out is a transfer fee on the tag and wheel tax sticker(and whatever other "fees" they can come up with)
And that affadavit thing......if it's signed and filled out properly(on a car bought for less than normal value), there ain't much they can do about it.
I'm sure Metro is gonna be a little harder than it is out here in the sticks, but if you've been there before and they sorta know you, well.....

mid-tenn mike

[JoeCollectible]

I live in Hendersonville actually... probably worse than Metro up here in snob-ville. (I bet you didn't know there was actually some poor college students in Hendersonville)

I am thinking about trading a 63 ford galaxie fastback for a 95 dodge street rod. I don't know how to link to my other thread, but I am asking about advice on the trade in my other thread.

Ok, so I just need to pay about about $86.00 for a new tag if I trade for something. (I currently have antique tag) - sounds good. Thank you sir!

[earl schieb]

I think they'll give you credit for your antique tag, btw---but you're still gonna be out some bucks.
Also, the Dodge truck trade don't sound so hot to me.....I would say 'pm me who you're dealing with' but I think I wanna stay out of this one http://www.jalopyjournal.com/ubbthreads/images/graemlins/shocked.gif

good luck anyways http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif

mid-tenn mike

[GomezGarage]

Ive traded plenty without problems. I believe "Earl Shieb" is correct, all Ive ever needed was the vin # of the traded car. I do always go in with pictures of the cars and a solid unconcocted sounding story. I even convinced the clerk I traded for some sheep once. No lie I told her I was a farmer and I traded an old 1964 Pickup for 10 sheep. She was so confused she just estimated the sheep value at 500.00 and I paid minimal taxes.

[JimC]

I have recently traded twice.
As well as signing the title for the new owner (Each title), use a bill of sale for each vehicle and state in the Bill of Sale the price of each including the words "Even Trade".
The price doesen't matter as long as it is equal.
Then there is no sale price for taxes since one cancels the other.
If there is a cash difference, that should be in the form of an offering and should not be mentioned any where.
In your particular area, it is advisable to contact your Dept of Motor vehicles BEFORE the trade.

An example.
You and I trade cars with you getting 500 cash AND MY CAR.
We each give the other a Bill of Sale stating each we are trading cars valued at 25000.00
We each sign the respective titles to each other and I hand you the $500.00 as agift or just because I like you.

[Smokin Joe]

Idaho doesn't recognize a trade. They see it as 2 sales and collect taxes from both. I trade my $10,000 car for your $10,000 car and the state wants sales tax on the full $20,000 involved.

[HELLBILLY]

[ QUOTE ]
Idaho doesn't recognize a trade. They see it as 2 sales and collect taxes from both. I trade my $10,000 car for your $10,000 car and the state wants sales tax on the full $20,000 involved.

[/ QUOTE ]
Damn!http://www.jalopyjournal.com/ubbthreads/images/graemlins/shocked.gifWhat a crock of......whats the tax rate? 4%,8% ?

[JoeCollectible]

Yeah really that would suk Idaho. I got another call this morning on the galaxie and am pretty sure that I am gonna take cash and forget about the whole "pro street" thing altogether.