N.M. Admin. Code § 3.2.231.8

Current through Register Vol. 35, No. 23, December 10, 2024

Section 3.2.231.8 - TRADE-IN MUST BE OF LIKE PROPERTY

A. A trade-in of tangible personal property, as used in Section 7-9-71 NMSA 1978, must be of the same type as the tangible personal property being sold.

B. Example 1: X, an appliance company, sells a refrigerator to Y and takes a radio as a trade-in. X cannot deduct that portion of its gross receipts on this transaction that is represented by the trade-in because a radio is not the same type of tangible personal property as a refrigerator.

C. Example 2: S, a construction equipment dealer, sells Y, a construction company, a crusher and takes a tractor as a trade-in. S cannot deduct that portion of its gross receipts on this transaction that is represented by the trade-in because a tractor is not the same type of tangible personal property as a crusher.

D. Example 3: A manufactured home is not the same type of tangible personal property as a "travel trailer" as defined in Section 66-1-4.17 NMSA 1978, for purposes of the trade-in allowance provided under Section 7-9-71 NMSA 1978.

N.M. Admin. Code § 3.2.231.8

9/29/67, 12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 3/19/92, 11/15/96; 3.2.231.8 NMAC - Rn, 3 NMAC 2.71.8 & A, 6/14/01