Buyback question

I know this is a dumb question, I'm an idiot when it comes to taxes and am trying to figure out the best option on the buyback vs fix. My buyback is going to be somewhere around $20k (the website when I registered quotes me $3k less than the document to calculate the amount says so not sure the exact amount) Does anyone know how taxes work on the buyback? If it's affected by taxes then that $20k sounds a lot less appealing. I already paid taxes on the vehicle so I'm assuming taxes don't affect it? I haven't sold a car in years, only done trade in's so forget how all that works.

If I remember right if you bring a trade in when buying a new vehicle they can deduct the value of the trade in off the total taxed price of the vehicle. So if bring my Passat in and trade for a new gasser Passat, any idea if that works like a trade in for taxes or is like putting $20k cash down on the new car and would have to pay taxes on the full price?

One last question... what's everyones speculation on the how price will be affected on these TDI's after all the buybacks? I'm kind of thinking the value will go up quite a bit since there will be a lot less of them available for purchase. I still think the performance vs economy is absolutely unmatched, so there will still be a decent demand for them.

I initially thought the buyback vs fix decision would be an easy one, thought I would sell it and upgrade to something bigger an/or newer. The closer it gets the more my wife and I are realizing how much we like the car and may not want to get rid of it.

I think your tax question is state specific, as there are no federal taxes involved when purchasing a vehicle.

Buyback is not a trade. Two different transactions if you buy. Contact Utah tax department to see if they will be making any special exemptions for the VW deals. Been discussed in many threads here.

Unless VW sends you a tax form related to it, which would imply that they also sent one to the IRS, don't claim the buyback.

I believe I saw that the buyback $ does not show as income and no state or federal taxes collected.

As for buying another car, I do not believe it counts as a trade. For instance, say you bought a $30k MSRP car in MA and you were trading in a car worth $12k. You would only pay sales tax on $18k, not the whole $30k. I don't think that is the case for the buyback. It would also be a pretty big advantage for VW dealers since they are the only dealers who can accept the car back. Since the dealer isn't actually buying it, they are just facilitating the return for VW, I think you are stuck paying the full state tax on the new/used new to you car.

AFAIK, cash value (buyback) in exchange for vehicle. No tax is involved...no "income" to the seller.
The buyback has nothing to do with any new purchase that is negotiated with the dealer. That is totally separate, and would be subject to applicable taxes.

More of the same crap over and over again. Peterwinkle....read this:

http://forums.tdiclub.com/showthread.php?t=466851&highlight=tax

and this....

http://forums.tdiclub.com/showthread.php?t=466242

and this...

http://forums.tdiclub.com/showthread.php?t=466242

and this...

http://forums.tdiclub.com/showthread.php?t=465935


and here is a tip...don't title a thread in here "Buyback Question". They are all buyback questions. Put some effort into it and be more specific.

Thanks buddy, I had searched and the only threads that came up were concluded with "this has already been discussed". Those were the kind of threads I was looking for.

Jicafold said:

More of the same crap over and over again. Peterwinkle....read this:

http://forums.tdiclub.com/showthread.php?t=466851&highlight=tax

and this....

http://forums.tdiclub.com/showthread.php?t=466242

and this...

http://forums.tdiclub.com/showthread.php?t=466242

and this...

http://forums.tdiclub.com/showthread.php?t=465935


and here is a tip...don't title a thread in here "Buyback Question". They are all buyback questions. Put some effort into it and be more specific.

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