here's a question for folks in IL who have purchased a used EVO, what is the deal with the tax/reg/etc you have to pay when you buy a used car? from what i've seen online, it seems we need a RUT-50 form which caps the tax paid at $1500. Is that right? Is there anything else which IL collects from buyers of used cars?

 

i'm not 100% sure about form RUT-50 being the only one that u need since the IL DMV supplied me with everything that I need when i bought my used evo last yr, but i know i had multiple forms to fill out since i need plates for the car too. sorry that i don't have more info for you, but hopefully someone else here will.
i'm not aware of any cap limit, but the sales tax, lisc & registration should be the only things you have to worry about. I paid $750 for the sales tax on a $19k evo purchase. just make sure u have a purchae of sale agreement with the seller and u. i received a letter from the IRS a few months ago stating that I owe them more $$ for the sales tax since the IRS believes that i should've paid more for the car based off the KBB listing. Had to fax them the purchase letter that the seller and i signed so that they would drop the additional fees and late charges that they wanted me to pay, but they are horrible to deal with to get this resolved and u can't even get a confirmation letter from them stating that the issue has been resolved. what a stupid waste of time!

 

sounds like your used evo may be coming from a privvate sale?

if so you dont have to pay tax for anything. its private. just pay for title transfer and plates.

from a dealer, plan on paying sales tax. ( its based on the county where you live, so if your really chicago, you will pay alot)

then its simply title- ithink 100 bux
plates- 80 bux

 

THIS GUY IS TALKING OUT HIS ***...
You have to pay tax private party or dealer....
Get a RUT 50 form when you get your title app. It will tell you how much you need to pay.

This individual will not. He should shut up if he does not know what he's talking about.

I hope this gets him a vacation from the site.

DO NOT MESS WITH THE TAXMAN....

 

looks like its just sales tax according to the rut-50, title and plates. thanks guys!

btw, evoixbeauty, any idea why the irs audited u after the fact? i would have thought the counter staff at sec of state or DMV would check ur bill of sale etc and call it a day, rather than audit u months after the transaction. seems weird.

 

same exact thing happened to me... but it isn't the IRS(federal), it is the Illinois Dept. of Revenue (State). And it's not really an audit...

 

yeah, sorry it was the IL dept of revenue and not the feds- i should've clarified that better so sorry for the confusion.

derekste is rite, its not an audit, but just a form basically stating that the state wants more sales tax $$ from u for buying a car. the guy at the dmv didn't look all of my paperwork, so thats prob y the state sent me the letter. i acutally had to call my tax guy first to find out more info - its typically use for business to submit sales tax. i had to call the 800# on the form, and after sitting on hold for over an hr, i learned that it was b/c the state wanted proof that i paid the price i did for my evo cuz they used KBB price.

no matter if u go thru this too or not, u'll have to pay IL sales tax when u go to the dmv to transfer over ur plates and the title.

kristin

 

the problem with the vehicle tax rules in Illinois is that all cars of a specific make/model/year are valued exactly the same regardless of options, milage, and condition (both cosmetic and mechanical).

now, you don't need me to tell you that the dented up '05 Evo with a bunch of horribly-executed mods and 110k on the clock is worth less than the same '05 Evo SSL with 25k and immaculate condition, but apparently the state does.

Usually a well-written letter and a copy of the bill of sale faxed to the IL Dept. of Revenue takes care of it.

 

ahhh ok. so its just some paperpushing ...

 

With regards to paying tax on a private party sale.............

edit the bill of sale to read a lower amount then what you paid for the car if your buying private party. The DMV/government will have no way of knowing without contacting the previous owner (which is highly unlikely, since they are still getting paid). Ive done it several times and you can save a good chunk of money on taxes.

Their are tax brackets based on the total price of the vehicle. Therefore if you buy an evo for lets say 20,000, but then write the bill of sale for 14,999 you just saved yourself hundreds in taxes, since you fall in the "under 15,000" bracket.

 

^ completely agree. thats why the state sent me a form to claim more taxes on my evo since I paid less then $20,000 according to the bill of sale. Saved me $300+ compared to what I would've paid in taxes if I put the 'correct' purchase price on the bill of sale.