I am weighing options on taking a company truck or keeping a truck allowance. Repairs and maintenance aren't covered and for a few other reasons I'm considering the company vehicle.

If I do, I'd like to upgrade my wife's 2015 Denali. I would also need to sell my 2018 GMC 2500 duramax.

Would I be able to trade-in both vehicles and apply that to the new purchase? I would assume that I would need to pick one for tax purposes and then just sell the other to the dealer.

dahouse said:

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I am weighing options on taking a company truck or keeping a truck allowance. Repairs and maintenance aren't covered and for a few other reasons I'm considering the company vehicle.

If I do, I'd like to upgrade my wife's 2015 Denali. I would also need to sell my 2018 GMC 2500 duramax.

Would I be able to trade-in both vehicles and apply that to the new purchase? I would assume that I would need to pick one for tax purposes and then just sell the other to the dealer.

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You can definitely trade two cars on a single purchase transaction, it happens all the time. I'm not sure about the tax treatment but I assume they just add the amounts they are giving you for both cars and subtract that from the sales price of the new car to determine the taxable basis for sales tax.

Just be aware your personal use of the company vehicle is taxable, if you don't have a "spare" vehicle and you get audited they are going to scrutinize your "personal use" mileage.

I've had company trucks in the past with personal use. I'm aware of the tax implications. One company I worked for gave us a "bonus" that covered the usage.

Still not sure which way to go, I'll make a decision once I see the actual policy

You can trade them both in and not pay taxes on the total trade amount. It's happens often. For example Grandma dies so Grandpa trades her LeSabre and his S10 for a new Camaro

a07nathanb said:

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You can trade them both in and not pay taxes on the total trade amount. It's happens often. For example Grandma dies so Grandpa trades her LeSabre and his S10 for a new Camaro

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Recently went through the same thing, traded both cars in on a new one for my wife since I was getting a company car. They treat it the same as a single trade, from a tax standpoint. It was simple and easy