Quote Originally Posted by HURRICANEBOB View Post
To cover the taxable gain, most dealers took the incentive money and added it to the trade-in vehicles value. That way the dealer shows more sunk cost, and less taxable gain, but the amount reported to Nada becomes artificially higher. And that benefits the dealers again, because they now get to sell that clunker and get more money ouf of it, as they negotiate and show you the Nada book.
I thought under the Cash for Clunkers program, the clunkers traded in had to be destroyed, and couldn't be re-sold?