Third Party Trades
NOTICE: The information below was obtained directly from the Florida Department of Revenue (DOR) website. Links are provided so you may access the content on the DOR website.
A customer comes to your dealership to purchase an RV. The customer doesn’t have a trade but the customer brings someone (it doesn’t matter if that someone is a relative or friend) who is “giving” an RV to your customer to use as a trade with his/her purchase. The amount of the trade (trade allowance) may be deducted from the taxable amount of your sale, just like any other trade! Third party trades are allowed by both the Florida Department of Revenue and the Division of Motorist Services.
Below are the steps you should follow when accepting a third-party trade.
Third party trades are allowed by the Florida Department of Revenue. This means a third party (person or company) may allow your customer to use a vehicle as a trade toward the vehicle your customer is purchasing from you. Your customer also receives sales tax credit for the amount of the trade. To complete this type of transaction:
- The third party must reassign the title directly to the dealership (not to your customer).
- You should have a gift affidavit completed by both the third party and your customer. (Consult with counsel regarding the wording on the gift affidavit.)
- The trade information must be entered on the last line (bottom) of the Application for Title (HSMV 82040) just as if the trade was received and in the name of your customer.
You may access the documentation from the Florida Department of Revenue regarding third party trades by clicking here DOR LTA Third Party Trades