Quoted from delt31:I ended up trading for this game (giving the seller one of my games). Should I alert the state of that and then suggest paying the difference in value of my original and his game?
If they were treating it like a car sale, the tax would be the difference between the new car price and the trade in value. So just say they were of equal value. If they want to really get into it they might make you (and possibly the other guy) sign an affidavit to that effect.