Forums
NautiqueParts.comNautiqueSkins.com - Correct Craft Upholstery and Part
  New Posts New Posts RSS Feed - Sales tax on private sale, how low can I go?
  FAQ FAQ  Forum Search   Register Register  Login Login

Sales tax on private sale, how low can I go?

 Post Reply Post Reply   
Author
mbshaw88 View Drop Down
Senior Member
Senior Member
Avatar

Joined: April-28-2013
Location: Chicago
Status: Offline
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote mbshaw88 Quote  Post ReplyReply Direct Link To This Post Topic: Sales tax on private sale, how low can I go?
    Posted: September-22-2020 at 8:51am
If I buy a boat from a family member and get to write in whatever we want down for a Bill of Sale price, how low can I go without raising any red flags with state?

Specifically Illinois for an RUT-75 form:
"The tax rate is 6.25 percent of the purchase price or fair market value, whichever is greater."

How do they tell what fair market value is and how do they know it's not a damaged project boat?

This is all totally hypothetical by the way LOL
Back to Top
Mpost View Drop Down
Senior Member
Senior Member
Avatar

Joined: July-05-2018
Location: Monticello, MN
Status: Offline
Points: 215
Post Options Post Options   Thanks (0) Thanks(0)   Quote Mpost Quote  Post ReplyReply Direct Link To This Post Posted: September-22-2020 at 8:56am
In Minnesota we don't have to pay sales tax on boats. But I know that on cars now they have a fair market value they use if your stated price is too low. If it is damaged or something else, they require a certified inspection/estimate to get a lower value. 
84 SN Sold   98 SN    Lund Pro V   1975 Alumacraft
Back to Top
TRBenj View Drop Down
Grand Poobah
Grand Poobah
Avatar

Joined: June-29-2005
Location: NWCT
Status: Offline
Points: 20712
Post Options Post Options   Thanks (0) Thanks(0)   Quote TRBenj Quote  Post ReplyReply Direct Link To This Post Posted: September-22-2020 at 10:23am
Check and see if there is an inter-family sales tax exemption in your state- that is the case in many. You can transfer for $1.
Back to Top
mbshaw88 View Drop Down
Senior Member
Senior Member
Avatar

Joined: April-28-2013
Location: Chicago
Status: Offline
Points: 244
Post Options Post Options   Thanks (0) Thanks(0)   Quote mbshaw88 Quote  Post ReplyReply Direct Link To This Post Posted: September-22-2020 at 10:35am
Originally posted by TRBenj TRBenj wrote:

Check and see if there is an inter-family sales tax exemption in your state- that is the case in many. You can transfer for $1.


You're correct, immediate family members are based only on purchase price.
Unfortunately this would be from my cousin :(
Back to Top
Morfoot View Drop Down
Grand Poobah
Grand Poobah
Avatar

Joined: February-06-2004
Location: Cumming, GA
Status: Offline
Points: 5023
Post Options Post Options   Thanks (1) Thanks(1)   Quote Morfoot Quote  Post ReplyReply Direct Link To This Post Posted: September-22-2020 at 12:28pm
Originally posted by mbshaw88 mbshaw88 wrote:

You're correct, immediate family members are based only on purchase price.
Unfortunately this would be from my cousin :(


Too bad you're in Illinois.. Heck down here in the south we marry our cousins so this deal would be legit! ;)
"Morfoot...He can ski. He can wakeboard. He can cook chicken. He can create his own self-named beverage. And..can also apparently fly. A man of many talents."

72 Mustang "Kermit", 88 SN Miss Scarlett
Back to Top
Gary S View Drop Down
Grand Poobah
Grand Poobah
Avatar

Joined: November-30-2006
Location: Illinois
Status: Offline
Points: 13265
Post Options Post Options   Thanks (0) Thanks(0)   Quote Gary S Quote  Post ReplyReply Direct Link To This Post Posted: September-22-2020 at 12:42pm
Tim is right. Here in Illinois the state sets the value no matter what your bill of sale says you paid. Just wait till you go to the dmv to get this sorted out- after standing in line 3-4 hours you'll pay just to get out of there and you'll be happy.
69 Mustang HM SS
95 Nautique Super Sport
Back to Top
8122pbrainard View Drop Down
Grand Poobah
Grand Poobah
Avatar

Joined: September-14-2006
Location: Three Lakes Wi.
Status: Online
Points: 40242
Post Options Post Options   Thanks (0) Thanks(0)   Quote 8122pbrainard Quote  Post ReplyReply Direct Link To This Post Posted: September-22-2020 at 1:09pm
And with the financial situation Illinois is in, I'm sure they won't give you a break in the value. Cry


54 Atom


77 Tique

64 X55 Dunphy

Keep it original, Pete
<
Back to Top
tryathlete View Drop Down
Platinum Member
Platinum Member
Avatar

Joined: April-19-2013
Location: Lake Villa, IL
Status: Offline
Points: 1705
Post Options Post Options   Thanks (0) Thanks(0)   Quote tryathlete Quote  Post ReplyReply Direct Link To This Post Posted: January-13-2021 at 5:31pm
Gary, I’ve used my creative local currency exchange to get titles and such and they provide creative guidance worth thousands (that translates into hundreds 😉 😉).

With only being on my third boat it hasn’t created much free cash, but anything is better than giving it to the corrupt state of IL. Our wicked witch melted today as Mike Madigan is finally out of power, so there’s a flash of hope in a sea of misery.
Back to Top
 Post Reply Post Reply
  Share Topic   

Forum Jump Forum Permissions View Drop Down

Copyright 2021 | Bagley Productions, LLC