Legal Question in Tax Law in Illinois

I would like to know if I trade in my Harley for

another one do I pay taxes on the difference or just the taxes on the the balance

Asked on 9/04/13, 10:49 am

1 Answer from Attorneys

Virginia Prihoda Law Offices of Virginia Prihoda

You pay sales tax on the retail price of the new Harley. The trade-in is considered part of how you pay for the new item. However, you probably won't owe any income tax unless the Harley(s) is/are used in a trade or business.

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Answered on 9/04/13, 11:09 am

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