I am thinking of trading bikes with a guy from Craigslist. Of course I know to check the bike out real good and to be cautious of scams. My question is how does the state calculate taxes on the trade? I would be giving the guy my bike plus $750. I live in Pennsylvania. Anyone know about this?

 

If Im not mistaken at a dealership you would only be paying taxes on the $750.00 difference you paid. I assume a private sale would be the same(?) Make sure you get a detailed written receipt for the transaction

 

I'm certain that this is state specific. In Ohio many years back I traded a stereo system for a Yamaha 250 and the guy at the tag office refused to acknowledge "gifting" the items to each other to avoid the taxes.

Pa. may well take book value and calculate taxes from there.

 

I just traded bikes with another guy "even up". Straight swap. He gave me his bike, and I gave him mine. He gave me no money, and I gave him none. We both told the title office it was a "gift". The lady at the title office asked me no questions and gave me a title. Several weeks later I got a questionnaire from the state asking me about the bike. Did I pay anything for it? Did I give him anything of value? Did I work for the bike at all? Several more questions of that nature. I simply replied "no" to all the questions, and told them no money was exchanged and sent it back to them. The guy I traded with got the very same letter from the state. He answered just as I did. I haven't heard anything back, and it's been about a month. I see no reason to have to pay taxes on a deal like this. I'm in Ohio.

 

state specific, but I see no issues. I sold a dirt bike to one guy and purchased another from a different person the next week. That for sure was a no go.

 

So you got a nice lady and a letter and I got a tough guy and no letter. Doesn't sound like anything's changed. Wonder what would happen if they found out you got another motorcycle for yours? You lied on the questionaire. Wage garnishment? (There's your answer OP.)

 

I've done this in 2 different states. Colorado taxed me just on the difference ($1000) and Massachusetts taxed me on NADA average value of the vehicle

 

Not sure about PA. In Maine I would pay sales tax on the purchase price of the bike, based on hand written bill of sale from the selling party. Pretty sure NY works the same way. Help each other out - you buy his for $755, he buys yours for $5.

Excise tax here is paid at registration based on the original sticker price of the vehicle and a fixed depreciation rate - no avoiding that one for us.

 

In Ca Ill always put 100.00 on the title so the DMV wont ask questions and pay the 7.75 in taxes lol

 

Some states go by NADA value, others by what you just tell them?