REVscene Automotive Forum - View Single Post

jasonturbo · 09-20-2010, 10:23 PM

Here is how private trade works...

http://www.icbc.com/vehicle-registra...ansfer-tax.pdf

This info can be found on the transfer form.

Just like a doing a trade at a dealership, taxes apply to any cash that is exchanged.

So if it's a straight up trade, you dont pay any taxes, but if ICBC feels the value of the two vehicles being traded are not within a reasonable range, they may question why such a trade is taking place as they assume you are lying to avoid paying taxes. They can ask for "documentation" to back up the trade... dont ask me what that would be? (bank records?)

If the trade involves one party having to tade+cash on top, that party who puts the cash down has to pay taxes on the difference between the two trades. (Whatever the cash exchaned, is what will be taxed)

EDIT+ Beat me to it.

09-20-2010, 10:23 PM	#3
jasonturbo I contribute to threads in the offtopic forum Join Date: Feb 2008 Location: North Van Posts: 2,849 Thanked 7,109 Times in 1,264 Posts Failed 291 Times in 102 Posts	Here is how private trade works... http://www.icbc.com/vehicle-registra...ansfer-tax.pdf This info can be found on the transfer form. Just like a doing a trade at a dealership, taxes apply to any cash that is exchanged. So if it's a straight up trade, you dont pay any taxes, but if ICBC feels the value of the two vehicles being traded are not within a reasonable range, they may question why such a trade is taking place as they assume you are lying to avoid paying taxes. They can ask for "documentation" to back up the trade... dont ask me what that would be? (bank records?) If the trade involves one party having to tade+cash on top, that party who puts the cash down has to pay taxes on the difference between the two trades. (Whatever the cash exchaned, is what will be taxed) EDIT+ Beat me to it.