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Private boat trade: Who pays sales tax?

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Private boat trade: Who pays sales tax?

Old 05-08-2019, 01:43 AM
  #21  
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Originally Posted by fireisland1 View Post
Fla sounds better the NY. On the reg form NY specifically asks for money paid, work performed, goods traded. So if you trade 100% equal they still charge you full boat value to both parties. The only way out is to go through a dealer

Yup like he said here in NY a very on fair act on old used worn out stuff which is pretty much all I buy , the state just wants and wants and wants
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Old 05-08-2019, 09:23 AM
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I just called the county tax collector call center and spoke to a representative who was very helpful. According to her, if doing a trade of vessels of equal value, on form 82040 under section 9, sales tax exemption, you write "even trade". No tax is due.
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Old 05-08-2019, 10:02 AM
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Just sold mine, the seller paid tax and regs, the money I received went right to the new boat as part of down payment.
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Old 05-08-2019, 11:14 AM
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Originally Posted by Tominator View Post
Here's the thing, that statute is intended for boat, etc dealers where used articles, accepted and intended for resale, are taken in trade on a new or used boat. If you are not a registered seller and are not taking the used boat in trade with the intent of reselling it then this exemption will not apply. You may be deemed to have sold your boat to him for its fair market value and then bought his boat for the same amount, and likewise for him. And you may both get hit with sales tax.
Everything you wrote here, is wrong.
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Old 05-08-2019, 12:09 PM
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Originally Posted by JAMESNV View Post
I just called the county tax collector call center and spoke to a representative who was very helpful. According to her, if doing a trade of vessels of equal value, on form 82040 under section 9, sales tax exemption, you write "even trade". No tax is due.
This makes sense. I was given a jon boat years ago and wrote $1 as the sale price on the title and the clerk said I should have written "gift" instead of an amount as an extremely low amount could trigger a red flag.
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Old 05-08-2019, 12:22 PM
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Originally Posted by Dan_F View Post
Glad I donít live in a state that collects sales tax...
What state does not collect sales tax??
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Old 05-08-2019, 12:26 PM
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If your boat is worth $100 and his is worth $100 then take the bill of sale to the tax office and pay the $8. Done
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Old 05-08-2019, 01:28 PM
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How about gifting each other the boat... Probably do not want to go to DMV at the same time... or maybe u do.
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Old 05-08-2019, 02:03 PM
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Originally Posted by gioquin View Post
How about gifting each other the boat... Probably do not want to go to DMV at the same time... or maybe u do.
I thought about doing that as well. But would have to file a gift tax return as both items are worth more than 15k. Would be beneficial to do that now before Dems get back in office and lower the estate and gfit tax exemption. Seems like a trade is the best bet...as they both truly are worth the same.
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Old 05-08-2019, 03:04 PM
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Depending on the $$$ involved, get a dealer involved in the trade for a flat fee. Dealer takes your boat on trade towards other boat and vice versa. 100% legal tax avoidance, not tax evasion.

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Old 05-08-2019, 03:23 PM
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The amount of bad and just plain incorrect advice in this thread, even after you called and got the exact answer, is staggering.
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Old 05-08-2019, 03:28 PM
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Originally Posted by Gasser44 View Post
What state does not collect sales tax??
Oregon. I looked it up and apparently itís just us, Alaska, Deleware, Montana, and New Hampshire.
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Old 05-08-2019, 03:29 PM
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In Florida you only pay tax on the hull. As a private party you decide what you sell the hull for. Subtract the motors, electronics, and everything else in the boat at your decided value on the bill of sale and the tax will not be much.
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Old 05-08-2019, 04:06 PM
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Originally Posted by Dan_F View Post


Oregon. I looked it up and apparently itís just us, Alaska, Deleware, Montana, and New Hampshire.
NY is a wham bam state the almighty governor taxes everything the buyer pays sales tax of 8% and the seller has to report the sales income because its reportable income, also if seller claims a reportable income of 10,000 dollars and the DMV records show the buyer reported the sale at 2,000 dollars they could if they want start a investigation for tax evasion .
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Old 05-08-2019, 04:54 PM
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Originally Posted by Dan_F View Post
Glad I donít live in a state that collects sales tax...
So, you think living in one that has a State income tax is better?
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Old 05-08-2019, 06:21 PM
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Originally Posted by JMarkB View Post

So, you think living in one that has a State income tax is better?
Having neither one would be great. Alaska is the only state that doesnít have one or the other, and it is way too cold for my wife. Most states have both.

The government gets their money one way or another, but paying tax on everything you buy just seems wrong having grown up without it.
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Old 05-08-2019, 07:45 PM
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I pay tax on what I tell them I bought it for. The end.
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Old 05-08-2019, 08:00 PM
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A sales tax on used items (boats or anything else) is just wrong. That item has been taxed already, when it was sold the first time. Anything after that is just a money grab by the state.


(And yes I paid it when I bought my boat. Didn't like it but I paid it.)
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Old 05-09-2019, 02:52 AM
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Montana.. couple others. All governments need incomes, HOW they do varies by state.
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Old 05-09-2019, 08:23 AM
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Originally Posted by JAMESNV View Post


Exactly. If Iím reading this right...in a private trade...Boat for boat, you can credit. Boat for car...not exactly clear. Boat for jewelry...no way Jose. At least in a private trade.
This was Minnesota where I worked. If you traded in a car (or sailboat I later learned) worth $9K for a Car you paid $14K for, you owed sales tax on $5K.

At least with cars, everywhere I've lived you pay tax when you register the vehicle if you go the private party-private party route. They didn't much care what you paid for it, they had a chart based on year, mileage make and model.
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