Surely there will be an accountant TDi owner that will know something on here about this. If someone accepts a buyback and will be given a check for their car.... A few questions here...
1. If he/she cashes the check then will they owe income tax on the sell back of the car?
2. If he/she signs the check over to another person or a dealership for a different car, then will they not have to pay income tax on the buyback money?
3. Would it be better to sign the check over to get the price of the new car down and thus pay less sales tax on the new car?
4. Would it work better to just deposit the lump sum, and buy a new car if they offer 0% for 60 months?
Thanks for the help.
1. If he/she cashes the check then will they owe income tax on the sell back of the car?
2. If he/she signs the check over to another person or a dealership for a different car, then will they not have to pay income tax on the buyback money?
3. Would it be better to sign the check over to get the price of the new car down and thus pay less sales tax on the new car?
4. Would it work better to just deposit the lump sum, and buy a new car if they offer 0% for 60 months?
Thanks for the help.