Section 8. General Example

A. The following example illustrates the application of Section 7-9-77 NMSA 1978. B. Example: Y charters an airplane from X, an out-of-state airplane dealer. The charter is for one month. After one week Y decides to buy the airplane. X allows Y a “trade-in” for the remaining three weeks of Y's charter. Y cannot deduct the value of this “trade-in” from the value of the airplane in computing the compensating tax due. The “trade-in” was not tangible personal property.