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tax questions for Florida boat owners....selling my boat
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tax questions for Florida boat owners....selling my boat
Hi guys,
I just sold my used boat to a private owner. The new owner desires to pay tax on only the boat, not the motors and electronics which would reduce the selling price by 19k........and the tax liability.
From what I read with the state, I don't see an allowance for this.
Can anyone corroborate the legality of that?
Also, if I just sold my current boat and am getting in to a new boat in a month, is there anyway to apply my sales price of the old boat to the new boat without running the deal through my new boat's company?
I think I know the answers to both....but would appreciate your confirmation.
Thanks and have a great weekend guys!
Scott
__________________ going over the horizon in search of adventure
Re: tax questions for Florida boat owners....selling my boat
A recent article in ..I think- Florida Sportsman dealt with this. If it's an outboard, I believe you only pay tax on the registered hull and the registered trailer, IF IF you ITEMIZE the sales receipt. Apparently the key is..ITEMIZE the sale!. Now, getting your local tax collector to accept this....Congratulate yer buyer on being astute.
Re: tax questions for Florida boat owners....selling my boat
I have bought and sold boats this way in Florida. I have always made two reciepts. One for the hull only and another for the accessories. If you have a trailer, I would make a third for that as sales tax must be paid on it to register it. It is no risk to you to do it this way. Just represent the sales price broken down.
Re: tax questions for Florida boat owners....selling my boat
you need to give the buyer an itemized bill of sale or a bill of sale on the boat and one on the trailer and one on the motors. you only pay sales tax in FL on the items you register..i.e. hull and trailer. as for your new boat....if you run the deal through a dealer then your buyer pays tax on the FULL price, but you only pay on the difference.
Re: tax questions for Florida boat owners....selling my boat
I've done it a few times it will save you a bundle. Any time you buy a boat have the bill of sale be itemized. I've only had trouble once at the tax collectors office and once I explained this to the cashier she did it no problem.
As far as your other question about applying the sale of your old boat to reduce the amount of taxes on the new boat the only way you can do that is if you had traded in your old boat.
Re: tax questions for Florida boat owners....selling my boat
#1 - Your buyer is correct, he does not need to pax tax on the whole amount.
You do not reduce the selling price, you simply itemize it clearly. FL does not collect tax on your electronics, engines, or accessories, they collect tax on the hull. So I would list the hull at the NADA value and then make everything else work from there, at least, if you are happy with the buyer.
If the seller of a vessel entered the entire selling price of a boat, trailer and motor as the selling price on the transfer portion of the vessel title being transferred, must the new owner pay sales tax on the entire amount?
Yes, sales tax must be paid on the amount entered on the title, unless an itemized bill of sale listing the price of each component of the rig is submitted with the application. In such a case, the owner would only be required to pay sales tax on the boat and trailer.
----------------------------------------------
For #2, I don't believe there is any way to do it unless your new dealer classifies it as a "trade in" but then they'd have to be willing to sell it to your new buyer, etc. So "probably not."
RE: tax questions for Florida boat owners....selling my boat
I have a feeling most of you are "legally" incorrect. I bet -if the motor is mounted on the boat that you will not benefit by itemizing each part--I am not saying that some people
are not getting away with it but all the facts were not known to the tax collector.
Why not itemize the engine and body on a used car then?
RE: tax questions for Florida boat owners....selling my boat
Quote:
PDLBOATER - 4/22/2007 8:42 AM
I have a feeling most of you are "legally" incorrect. I bet -if the motor is mounted on the boat that you will not benefit by itemizing each part--I am not saying that some people
are not getting away with it but all the facts were not known to the tax collector.
Why not itemize the engine and body on a used car then?
PDL, I posted the FAQ from the state of florida above, it is very clear - although obviously the state would rather get the extra $$ by conveniently having you forget to itemize your bill of sale.
In Florida, you are only registering the HULL, nothing else.
It is not the same as a car - in a car, the engine is an integral part of the package and is /rarely/ changed from its factory configuration - blue book values etc are all based on the car+engine package. For boats, it's very reasonable to buy an old hull with new motors (which you would have paid sales tax on), a hull with no motors, or a hull with blown motors - and why would you give the state extra $$ for that?
IMO this is something the bureaucrats actually got right.
RE: tax questions for Florida boat owners....selling my boat
Quote:
AdamLotz - 4/22/2007 8:56 AM
Quote:
PDLBOATER - 4/22/2007 8:42 AM
I have a feeling most of you are "legally" incorrect. I bet -if the motor is mounted on the boat that you will not benefit by itemizing each part--I am not saying that some people
are not getting away with it but all the facts were not known to the tax collector.
Why not itemize the engine and body on a used car then?
PDL, I posted the FAQ from the state of florida above, it is very clear - although obviously the state would rather get the extra $$ by conveniently having you forget to itemize your bill of sale.
In Florida, you are only registering the HULL, nothing else.
IMO this is something the bureaucrats actually got right.
RE: tax questions for Florida boat owners....selling my boat
I just bought a boat here in FL and itemization is the key. Saved me a few grand. Regarding the engine / car question.... You DO have to pay tax on the engine if it is an inboard (not sure about I/0's). The tax collector specifically told me that I did NOT have to pay tax on outboards.
Also, I itemized the electronics & equip (justly) and did not have to pay on those either... just the hull and the trailer. Google it and you can find some info online.
As for not paying tax on both the boat you sold (income tax) and the boat you plan to buy... folks here are right, you can do that only if it is a trade in (just like a car).
Re: tax questions for Florida boat owners....selling my boat
Here is the info straight from the DMV.
If the seller of a vessel entered the entire selling price of a boat, trailer and motor as the selling price on the transfer portion of the vessel title being transferred, must the new owner pay sales tax on the entire amount?
Yes, sales tax must be paid on the amount entered on the title, unless an itemized bill of sale listing the price of each component of the rig is submitted with the application. In such a case, the owner would only be required to pay sales tax on the boat and trailer.
Re: tax questions for Florida boat owners....selling my boat
Itemize Itemize Itemize...
I just bought a used boat in FL and the dealer created 2 bills of sale....one for the boat and motor, and one for the trailer. The trailer was "sold" for $500 and they collected $32.50 in sales tax.
RE: tax questions for Florida boat owners....selling my boat
You thinks its bad in Fl come to West Virginia-- taxes plus more personal property taxes each year you own it!!!-- thats why mine are registered in FL--- same will apply on next new truck next year--
RE: tax questions for Florida boat owners....selling my boat
here is a form of bill of sale that i used to purchase a used boat, showing the itemization. send me a PM and i'll send it to you as an attachment. THIS IS NOT LEGAL ADVICE!
BILL OF SALE AND ASSIGNMENT
1. VESSEL NAME:
2. HULL ID #:
3. MANUFACTURER, MODEL; YEAR; LENGTH:
4. NAME AND ADDRESS OF SELLER:
5. ENGINE MANUFACTURER; MODEL; YEAR; ENGINE SERIAL NUMBERS:
6. NAME AND ADDRESS OF BUYER:
7. OTHER EQUIPMENT INCLUDED IN SALE:
8. CONSIDERATION:
HULL-------------------------------------------------------$
TRAILER--------------------------------------------------$
ENGINES W/EXTENDED WARRANTY-------$
ELECTRONICS-----------------------------------------$
MISCELLANEOUS EQUIPMENT/PARTS------$
9. TRANSFER OF TITLE; ASSIGNMENT OF WARRANTIES. For and in consideration of $________ (as itemized above), paid by the Buyer to the Seller, the receipt of which the Seller acknowledges, the Seller does hereby sell, assign and transfer to the Buyer all of his rights, title and interest in and to the Vessel and the Vessel Assets (as defined in the Vessel Purchase Agreement between the parties dated ________________), which are free and clear of all liens, mortgages and encumbrances of any kind and nature. Seller hereby further transfers, assigns and grants to Buyer all of Seller’s right, title and interest in and to any and all warranties in and to the Vessel and the Vessel Assets.
10. SIGNATURE OF SELLER:
The Seller certifies under penalty of perjury that the statements made in this Bill of Sale are true and correct to the best of Seller’s knowledge. The transfer of the Vessel and the Vessel Assets is effective as of the 1st day of March, 2007 at 2:00 pm.
_____________________________
Name of Seller
Dated this 1st day of March, 2007 11. SIGNATURE OF BUYER:
The Buyer certifies under penalty of perjury that the statements made in this Bill of Sale are true and correct to the best of Buyer’s knowledge. The transfer of the Vessel and the Vessel Assets is effective as of the 1st day of March, 2007 at 2:00 pm.
_____________________________
Name of Buyer
Dated this 1st day of March, 2007
12. ACKNOWLEDGEMENT AND NOTARY
STATE OF FLORIDA )
) SS.
COUNTY OF MIAMI-DADE )
The foregoing Bill of Sale was acknowledged before me this 1st day of March, 2007 by _______________, who is personally known to me or who produced his Florida driver's license as identification.
NOTARY PUBLIC
Sign_______________________
Print______________________ My Commission Expires:_______ 13. ACKNOWLEDGEMENT AND NOTARY
STATE OF FLORIDA )
) SS.
COUNTY OF MIAMI-DADE )
The foregoing Bill of Sale was acknowledged before me this 1st day of March, 2007 by _______________________ who is personally known to me or who produced his Florida driver's license as identification.
NOTARY PUBLIC
Sign_______________________
Print______________________ My Commission Expires:_______
tax questions for Florida boat owners....selling my boat 
