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Old 09-10-2008, 09:43 AM
 
25 posts, read 120,649 times
Reputation: 16

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We are looking to get rid of our 2002 Civic and buy a new CR-V in the next month. I know that we can get more for the car if we sell it privately, but since we only have 1 car it might be more convenient to do a trade-in.

Here's where I get confused: are we better off tax-wise buying in WI instead of IL? Looks like if we do a trade-in in IL we cannot deduct it but if we buy in WI we can. Am I reading that wrong? Are we getting hit somewhere else by doing this? (I'm sure we are)

If the trade-in allowance isn't an option for tax purposes when buying from a dealer are we better off just selling it privately and making an extra 1k or so on the car? Any clue what kind of taxes are involved when selling a vehicle privately vs. trading in to a dealer?

We live in DuPage county and will most likely be buying from DuPage county as well.
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Old 09-10-2008, 10:43 AM
 
Location: Lake Arlington Heights, IL
5,479 posts, read 12,259,148 times
Reputation: 2848
Quote:
Looks like if we do a trade-in in IL we cannot deduct it
False, you do get benefits by trading in your car.

The tax benefit only happens on the transaction price. If your new car costs $20K and your trade in is $2K, you are only taxed on $17K; the trade in comes off the new vehicle price. So if your tax rate is 8% you are saving $3,240 in tax. That means you would need to sell your car privately for more than $3240 to come out ahead vs. the $2K trade in allowance the dealer gave you. Plus add cost of time and advertising. Not sure how it works if you buy in WI. However if you buy in an IL county that charges less sales tax than your county; your county will ask you to pay difference when you register the car. Be sure to research how it works if you buy in WI so you don't end up possibly paying more.
This link has more info.http://www.revenue.state.il.us/Publications/Sales/STS76.PDF If you buy in WI you WILL pay tax in Illinois when you register the vehicle. Do not pay any WI sales tax, they should issue you a drive away permit allowing you to register in IL.


http://www.ag.state.il.us/consumers/new_vehicle.pdf Purchasing tips

Vehicle Use Tax
The purchaser of your vehicle pays sales tax, not you selling to private party.
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Old 09-10-2008, 12:02 PM
 
25 posts, read 120,649 times
Reputation: 16
I'm only seeing the trade-in deduction on the RUT-25 form (for out of state purchases) and not the RUT-50 (for vehicles bought inside IL).
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Old 09-10-2008, 12:29 PM
 
Location: Lake Arlington Heights, IL
5,479 posts, read 12,259,148 times
Reputation: 2848
Try page 40. What kind of transaction are you researching?
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Old 09-10-2008, 12:38 PM
 
25 posts, read 120,649 times
Reputation: 16
Yeah, pg. 40 helps, but it looks like it's for form ST-556 for the seller, not the buyer. Gotta love IL taxes! Thanks for leading me to the information though.
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Old 09-10-2008, 08:15 PM
 
Location: Gurnee IL.
694 posts, read 2,015,838 times
Reputation: 337
Gotta love ol George H.... He's chillin in prison while that fat cats are "collecting" the taxes......
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Old 09-12-2008, 03:57 PM
 
Location: Lake Arlington Heights, IL
5,479 posts, read 12,259,148 times
Reputation: 2848
Default Got NOTHING to do with federal govnmt.

Quote:
Gotta love ol George H.... He's chillin in prison while that fat cats are "collecting" the taxes......
Ryan was a crook and Blago is too. At least the previous Republican crook got road builts and passed a capital building program-something this Democratic crook/governor & democratic assembly can't get done. Blame Blago and Todd Stroger for the increased sales taxes. All members of the fine Democratic machine that really watches out for taxpayers $.
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Old 11-23-2015, 07:54 AM
 
1 posts, read 2,265 times
Reputation: 10
Hi. If I lease a car in a cook county suburb, do I still have to pay Chicago lease tax on that vehicle on top of Illinois tax?
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Old 11-23-2015, 08:27 AM
 
11,975 posts, read 31,780,988 times
Reputation: 4644
Quote:
Originally Posted by Marcus422 View Post
Hi. If I lease a car in a cook county suburb, do I still have to pay Chicago lease tax on that vehicle on top of Illinois tax?
Theoretically, you pay the taxes for where you live, not where you buy the car. But in reality you pay the sales tax for the county you bought the car in up front, and the Cook County will supposedly come knocking later for the extra sales tax. But I know several Chicagoans who have bought cars in DuPage or other counties with lower sales tax rates and never had the county bill them the difference.
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Old 11-23-2015, 08:28 AM
 
28,455 posts, read 85,346,203 times
Reputation: 18728
Default Of course!

Quote:
Originally Posted by Marcus422 View Post
Hi. If I lease a car in a cook county suburb, do I still have to pay Chicago lease tax on that vehicle on top of Illinois tax?


City of Chicago :: Personal Property Lease Transaction Tax (7550)

8% scheduled to go to 9%...
Such a deal...
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