You got it! Your $44,999 will be the "selling price" which includes the vehicle plus destination charge.
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Washington sales tax question
I’ve not purchased a vehicle in Washington before. I understand the tax exemption for EVs (first $25k exempt if purchase is under $45k). I‘ve read elsewhere on this forum that if you trade a vehicle in, that amount is deducted from the tax liability, so only the net purchase amount is taxed, is that correct?
Example maths:
$44999 (new car purchase)
(minus) $25000 (EV tax exemption)
(minus) $15000 (trade in)
= $4499 (taxable purchase)
Is this correct?
Example maths:
$44999 (new car purchase)
(minus) $25000 (EV tax exemption)
(minus) $15000 (trade in)
= $4499 (taxable purchase)
Is this correct?
1 - 16 of 16 Posts
Yes, though keep in mind that the $25k exemption will be dropping to $20k this summer.I’ve not purchased a vehicle in Washington before. I understand the tax exemption for EVs (first $25k exempt if purchase is under $45k). I‘ve read elsewhere on this forum that if you trade a vehicle in, that amount is deducted from the tax liability, so only the net purchase amount is taxed, is that correct?
Example maths:
$44999 (new car purchase)
(minus) $25000 (EV tax exemption)
(minus) $15000 (trade in)
= $4499 (taxable purchase)
Is this correct?
But, is the taxable amount in the example $4499? Or is the taxable amount $20000?
The $20k is removed from the equation. Your taxable $4,499 would become $9,499 in August 1, 2021.But, is the taxable amount in the example $4499? Or is the taxable amount $20000?
One other thing to note is that EVSE purchases and installs are also tax exempt.
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In order for your purchase to be eligible for the sales tax benefit your purchase price needs to be $45K or less. That means your dealer will have to give you a discount of about $200.
Guys, I appreciate the responses, but I don’t think I made my question clear enough, so I’ll try again:
Does a trade in reduce the amount of sales tax owed? I saw a post that said it does, I’m trying to confirm that.
Does a trade in reduce the amount of sales tax owed? I saw a post that said it does, I’m trying to confirm that.
Yes, it does.Guys, I appreciate the responses, but I don’t think I made my question clear enough, so I’ll try again:
Does a trade in reduce the amount of sales tax owed? I saw a post that said it does, I’m trying to confirm that.
Yes, if the purchase amount was less than $45,000.
Edit - the trade in value does reduce the sales tax liability regardless of the sales price. I misread your question, sorry!
Edit - the trade in value does reduce the sales tax liability regardless of the sales price. I misread your question, sorry!
Thank you!Yes, it does.
Has anyone purchasing a FE in Washington not been able to get their dealer to write the deal with a total sales price below the $45K threshold?
Therebwas a report of Dick Hannah VW in Vancouver, WA refusing. One buyer went through Larson Tacoma who did not ask for or receive it.Has anyone purchasing a FE in Washington not been able to get their dealer to write the deal with a total sales price below the $45K threshold?
Do you have to trade-in at the dealer where you purchase the vehicle in order to qualify the Sale tax benefit? Or you can sell your old vehicle to whoever who pay the most and use the money for new purchase but still enjoy the Sales tax benefit?
There are two sales tax benefits, and they can be combined. One is an exemption of the first $20,000 from sales tax for a new EV with a sales price under $45,000. This exemption changes (I think) every year, so you'd need to double-check the current amount. It is also applicable regardless of whether you trade in a vehicle.Do you have to trade-in at the dealer where you purchase the vehicle in order to qualify the Sale tax benefit? Or you can sell your old vehicle to whoever who pay the most and use the money for new purchase but still enjoy the Sales tax benefit?
The second is an exemption from sales tax equal to the value of your trade in. This is applicable for ANY vehicle, and as far as I know you can effectively only claim it if you trade in your old vehicle with the same dealer you buy a car from.
Me. My dealer flat out refused to talk price. I was very close to walking away, but we really wanted a FE.Has anyone purchasing a FE in Washington not been able to get their dealer to write the deal with a total sales price below the $45K threshold?
1 - 16 of 16 Posts
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