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

Question

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

Answer

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.