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I just spoke with an apple specialist and they told me now they charge the full retail amount of tax on a new I phone even if you trade in an old i phone and get a credit, and no longer just pay the difference. I find that double dipping on taxes in that that is not the true amount paid. Has anyone else found that to be the case?
A trade is in basically like Apple giving you cash (in the form of a gift card) to spend on something from Apple. It isn't a mark-down of an item. As such you are basically buying a device at full price but have a gift card to pay for a part of the full amount. Since you are paying full price you are taxed accordingly.
To get more information about the Apple Trade In service click on the link --> Apple Trade In - Apple
A trade is in basically like Apple giving you cash (in the form of a gift card) to spend on something from Apple. It isn't a mark-down of an item. As such you are basically buying a device at full price but have a gift card to pay for a part of the full amount. Since you are paying full price you are taxed accordingly.
To get more information about the Apple Trade In service click on the link --> Apple Trade In - Apple
When you trade a vehicle in and get a new one, you pay the difference in Sales tax in my state. The apple advisor that I spoke with did not understand that concept. If I had ordered online through apple it appears they do understand that concept, however they do not have the phone to ship till November online. I find it frustrating that they quote two different prices for the exact same phone due to not being trained properly.
You're not buying a car. You're buying a cell phone. And Apple follows the law in regards to collecting tax. I will tell you however, when I ordered my new iPhone using my phone as trade, I paid the full tax amount for the new phone, which is required at the time of purchase. BUT, when I traded in my old iPhone to Apple directly in the store, I got the amount promised, plus a portion of the taxes I paid on the phone a year earlier.
YES! That is exactly how it should be handled. The representative I spoke with did not understand that. And as well it really does not matter what you are buying, state taxation should be handle the same whether it is a car or a phone or a widget.
It's been handled the same way the last several iPhone purchases. I order online, but do the return in store. I wouldn't be too upset with the person you spoke with. Remember you're buying the phone upfront. Your trade isn't a factor until it has actually been traded. Often, people specify a trade and never trade the phone. So when you order a new phone, you're charged the full price of the phone, including all applicable taxes. It isn't until your trade has been received (and I would encourage you to do the trade at your closest Apple Store), that you'll see any tax benefit.
The IRS isn't involved with sales tax. That's according to states, counties and municipalities. Outside the USA it is a country level thing, but then it isn't the "IRS".
That's how it works. It's not up to Apple. Ask the IRS if you don't believe it.
Whether you get that or not will depend on the laws of the State you’re in, and possibly the local county or city as well.
charging tax on total amounts vs trade in amount
