If you run an automobile business in Illinois, you might be familiar with RUT 50. However, if you plan on starting one or buy one from a private seller, you should know the details of the form. Here we cover the basics of RUT-50, who needs to file it, and when it needs to be filed. We will also walk you through completing the form as well.
What is RUT-50?
Also known as the Private Party Vehicle Use Tax, the RUT-50 is a tax form for automobiles in Illinois. In other words, you should file this form if you purchased or acquired by gift or transfer a motor vehicle from a private party.
However, suppose you purchased a vehicle from an unregistered out-of-state dealer, a lender, leasing company, or retailer, or a passenger car from an unregistered Illinois lending institution; in that case, you must complete Form RUT-25 or the Vehicle Use Tax Transaction Return.
What is the eligibility for tax form RUT-50?
The eligibility for filing the form is based on the kind of transaction in Illinois. In other words, if a vehicle is sold out of Illinois, they are not required to file RUT-50 in the state. A RUT-50 is filed during titling under the following circumstances.
- If you are a retailer who sells motor vehicles to customers in Illinois.
- Private party selling a vehicle to another private party.
- Moving to Illinois with a car originally purchased or received as a gift from another private party.
Guide to Car Registration in Illinois
How to calculate the tax on the form?
One of two tax tables found in the form’s instructions is used to calculate the amount of Private Party Vehicle Use Tax reported on Form RUT-50. Meanwhile, which tax table to use depends on the vehicle’s purchase price (or fair market value).
The fair market value should be applied when there is no specified purchase price, in the case of a gift or even a trade. However, an authorized dealer may be able to provide a fair market value. In addition, a trade-in deduction is not permitted on this tax form.
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When should I fill out the tax form in Illinois?
Since filing this report’s sales tax, you must file RUT-50 in Illinois within 30 days of acquiring the vehicle if acquired in Illinois. However, if you acquired it outside Illinois, you must file it within 30 days of bringing it into Illinois.
Where can I find the tax forms in Illinois?
The Illinois Secretary of State’s office, the Illinois Department of Transportation, and the Illinois Department of Natural Resources all have these forms. In addition, you can send an email request or call our 24-hour Forms Order Line at 1 800 356-6302.
How do I fill out RUT-50?
- Provide your business information on the form.
- Enter the date of selling and the date you received the payment.
- Fill in the details of the buyer.
- Describe the item
- Calculate the sales tax.
- Sign the form.
- Send it to the Office of the Illinois Secretary of State Vehicle Services Department Howlett Bldg—Springfield, IL, along with the application fees.
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