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charging tax on total amounts vs trade in amount

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?

Posted on Oct 7, 2023 1:47 PM

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Posted on Oct 9, 2023 9:30 AM

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.


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Oct 9, 2023 9:30 AM in response to Limnos

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.


Oct 7, 2023 1:54 PM in response to rozgiebaba

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


Oct 9, 2023 9:36 AM in response to rozgiebaba

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.

Oct 9, 2023 9:54 AM in response to rozgiebaba

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.

charging tax on total amounts vs trade in amount

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