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Hi and welcome to Just Answer!When you sell loan notes - they are not subject of sales tax - thus no credit against sales tax.However - you realize a loss when notes are sold at a discount - thus the loss will reduce your net business income for income tax purposes.As the sales tax is your concern - they are paid by buyers as end users - not by you - and are based on the sale price regardless if paid in cash or financed with a loan. The dealership is acting as an agent of taxing authorities who is responsible to collect and remit sales taxes from buyers. Therefore - because the sale price is not changed - the sales tax liability is not affected.The sales tax liability is only affected when the sale price is reduced based on local law as in situation when the car loan is foreclosed. If you simply sell the loan note - the buyer still owns the same amount to a new creditor - and the sale price is not affected.