- A. When a retailer accepts tangible personal property as a trade-in for part or full payment on the sale of tangible personal property, the dollar amount of the payment represented by the trade-in is deductible from the retailer’s gross receipts from that sale.
- B. A trade-in deduction shall be limited to the amount of the retailer’s gross receipts on that sale.
- C. When the property traded in is subsequently sold at retail, the gross receipts from the transaction are taxable.
Historical Note
Renumbered from R15-5-1818 and amended effective August 9, 1993 (Supp. 93-3).