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tsaihwang
February 4, 2025
Question

Traded in 2019 car to lease a new 2024 car in 2024. Trade in value was at $15,000. Put $6,300 for down pay to cut the monthly payment. The remaining $8,700 is my income?

  • February 4, 2025
  • 1 reply
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    1 reply

    S
    SabrinaD2
    February 4, 2025

    When you trade in a car, the trade-in value isn't taxable income. It's used towards the new vehicle.

    In your case:

    • Trade-in value: $15,000
    • Down payment: $6,300
    • The remaining $8,700 is just the difference and not considered income.

    If you have any more questions, feel free to ask!

      T
      tsaihwangAuthor
      February 5, 2025

      Thank you so much for the pronto response.  It makes sense. Dealer did not give me any tax documents to report.  Thank you so much again!

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