Quote Originally Posted by VinnyQC View Post
Not really. Legally speaking, this is just one transaction, and if you choose to make it 2, then there's a sales tax credit on the 400$, so it evens out to 600$ anyway. Dealerships works like that with used cars.
Yes, we have talked to the CRA about this and they tell us that is how to do it. Sell the new item at discount then tax the trade when it sells. We have the bulletin in our files for this just in case!