If selling a car, do you save paying tax trading in your old car to the dealer?
I heard (from a car salesman) you pay tax only on the difference between what you sell them (the value of your old car) and what you buy. If this is true, wouldn’t it be advantageous to sell to the dealer where the new car is purchased—especially if the old car still has good value?
This question is in the General Section. Responses must be helpful and on-topic.