Who pay taxes when you trade a bike with another seller?

[Mikel]

Just curious on this one if someone could clarify this situation for me. When you trade in a bike to the dealer ship, so let's say bike A (worth $5000) and you want to buy bike B (worth $10,000) you trade in bike A and pay $5000 in taxes for acquiring bike B.

How does this work if it's a private sale. You arrange a private sale where you trade your bike + $5000 to another seller in exchance for their bike. Is it just one person who pays taxes or do both parties pay taxes?

 

[Wheelieboy]

Just curious on this one if someone could clarify this situation for me. When you trade in a bike to the dealer ship, so let's say bike A (worth $5000) and you want to buy bike B (worth $10,000) you trade in bike A and pay $5000 in taxes for acquiring bike B.

How does this work if it's a private sale. You arrange a private sale where you trade your bike + $5000 to another seller in exchance for their bike. Is it just one person who pays taxes or do both parties pay taxes?

Buyer pays the tax when they register the vehicle.

 

[smurfz]

Both of you will pay the trade value of the goods

I recently swapped Vehicles with someone we both Paid the HST on the value of the trade as if we has paid cash to each other

 

[Mikel]

That's what I figured. So if two parties get together and swap bikes but only one of them pays a little in the transaction both parties have to pay some sort of tax when they go to register it. The only saving grace I suppose is that you can almost make up the dollar amount when you tell the MTO what you paid for the bike.