IL tax credit question.
If you trade in a purchased car to one dealer can you buy from another and use the credits?
Example: trade $50k car to car max and go next door to Toyota and buy a $60k car and pay tax on $10k.
I’m aware of the 1yr limit and no cap.
No, it has to be in the same transaction.
If you do it in the same transaction you do open the Dealer up to some ‘profit’ that you might not notice.
I’ve looked up and down the statue for the state and couldn’t find it either way. I emailed the secretary of state and they were too busy for that type of question…crickets
I have worked for dealers in IL since 2016. That is how it works.
try calling IL Revenue - they’re very prompt
but i think what wam22 said is true or limited knowledge on dealer side - obviously there are tax breaks that are unknown to most of us
if you’re right that’s amazing
If you selling to Carmax and buying from Toyota then how it becomes a Trade. Has to be same dealership.
Most laws are written vaguely but if you read between the lines a little, it says the car has to be traded in and on the bill of sale or contract. Selling a car to CarMax and then buying a car from a Toyota dealer are two separate transactions since the car is neither traded in or on the bill of sale. At least that is my interpretation of this section.
prior to January 1, 2020,``not including the
3 value of or credit given for traded-in tangible personal
4 property where the item that is traded-in is of like kind and
5 character as that which is being sold ; beginning January 1,
6 2020, "selling price" includes the portion of the value of or
7 credit given for **traded-in** tangible personal property of like
8 kind and character as that which is being sold that exceeds
9 $10,000. "Selling price" , andshall be determined without any
10 deduction on account of the cost of the property sold, the cost
11 of materials used, labor or service cost or any other expense
12 whatsoever, but does not include interest or finance charges
13 which appear as separate items on the **bill of sale or sales**
**14 contract** nor charges that are added to prices by sellers on
15 account of the seller's tax liability under the "Retailers'
16 `Occupation Tax Act".
Page 42. SB0690ham002 101ST GENERAL ASSEMBLY
@senwia There is a work around for this and we do this for customers who finance all the time. Basically park your tax credits. For example, you have a buyer for your vehicle ( different dealership than the one you intend to buy from or wholesaler) Tell dealership where you’re purchasing your vehicle from that you want to trade in your vehicle and ultimately they will dealer to dealer the vehicle to the buying dealer/dealership. On paper, you traded in your vehicle and get the tax credits and if the dealership is flexible with adding an extra step to the paperwork its simply a bill of sale and saves you a bunch. You’re just adding a middle man to the deal. Everyone benefits. Ofcourse, with Carmax this may be a tougher situation but can do this with most dealerships
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