[brassplayersrock²]

Trading up is fun sometimes

[Big Mac]

Definitely a cool story. But I hope he knows to pay Uncle Sam his tribute. . .

[andi*pandi]

He didn't buy it, is there tax on trades?

There was a website a while back about a kid who started out with a paperclip and traded up.

Ah, here: one red paperclip

[vmarks]

Originally Posted by andi*pandi 

He didn't buy it, is there tax on trades?
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Yes. You're presumed to have bought it and are taxed on the value the state deems it to be worth. Sometimes this is called a highway use fee, sometimes it's a property tax, but unless it was gifted by an immediate family member, there's no exemption.