This resource is the Texas Comptroller of Public Accounts’ Motor Vehicle Tax Guide: https://comptroller.texas.gov/taxes/publications/96-254/trade-ins.php
It has several situations such as trade-ins, trade-downs and taxes due on balloon payments. Here is just some of the information:
If the purchaser of a motor vehicle trades in a vehicle as part of the transaction, the purchaser can deduct the value of the traded vehicle from the selling price. To be eligible, the trade-in must be taken as part of the same sales transaction and transferred directly to the seller. The tax is computed on the remaining selling price for the purchased vehicle.
For example, Jim purchases a $25,000 vehicle and trades in his $10,000 vehicle. Jim owes motor vehicle tax on the $15,000 difference.
The purchaser can take this deduction only by trading in a motor vehicle. Any other property, such as a boat, airplane, livestock, etc., that a seller takes in trade cannot be deducted from the selling price for motor vehicle tax purposes.
The value of the motor vehicle trade-in is not the equity, but the value of the vehicle traded in.
Motor vehicle tax cannot be reduced by the proceeds of a private-party sale or the sale to a different dealer of a motor vehicle that could have been used as a trade-in.
There also are several things to consider for tax deductions when driving for business. Here are just some tips, including:
What expenses can I deduct while traveling away from home?
A wide range of expenses can be deducted while traveling away from home.
Here are the main ones:
- Transportation fares, or actual costs (or a standard per mile rate) of using your own vehicle. Also, transportation costs of getting around in the work area-to and from hotels, restaurants, offices, terminals, etc.
- Lodging and meals (subject to the 50 percent limit on meals)
- Phone, fax, laundry, baggage handling
- Tips related to the above
The above tips came from this CPA firm’s website which is located on the border of Frisco and McKinney, in Collin County.
