AUTOMOTIVE SALES, USE & LEASE TAX GUIDE
If a trade-in exceeds the selling price of the vehicle being purchased, the dealer may not add the amount of the trade-in allowance to its tax return as a deduction on the sales tax return. (Rule . 810-6-1-.22) If a dealer allows a trade in on a wholesale, exempt or out-of-state sale, the amount should not be deducted on the sales tax return. ................
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