Traded in 2019 car to lease a new 2024 car in 2024. Trade in value was at $15,000. Put $6,300 for down pay to cut the monthly payment. The remaining $8,700 is my income?

[SabrinaD2]

When you trade in a car, the trade-in value isn't taxable income. It's used towards the new vehicle.

In your case:

• Trade-in value: $15,000
• Down payment: $6,300
• The remaining $8,700 is just the difference and not considered income.

If you have any more questions, feel free to ask!

[tsaihwang]

Thank you so much for the pronto response.  It makes sense. Dealer did not give me any tax documents to report.  Thank you so much again!