Indiana Only Allows Sales Price Reduction for “Like-Kind” Trade-Ins

Friday, September 1st, 2017

 
 
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Indiana Only Allows Sales Price Reduction for "Like-Kind" Trade-Ins

The Indiana Department of Revenue recently ruled that a recreational vehicle (RV) dealer could not reduce the taxable sales price of an RV by accepting a passenger vehicle, such as a car or pickup truck, as a trade-in.

Indiana allows dealers to reduce the taxable sales price of property by accepting "like-kind" property as a trade-in. For the trade-in allowance to apply, the property must be of "the same kind or character."

The ruling relied on guidance stating that a "like-kind exchange" means the trade-in of a passenger vehicle for a passenger vehicle, or an RV for an RV. The allowance does not apply to the trade-in of a passenger vehicle for an RV.

https://www.ttrus.com/Like Kind Trade Ins Indiana


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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