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Private boat trade: Who pays sales tax?

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Private boat trade: Who pays sales tax?

Old 05-07-2019, 05:18 PM
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Default Private boat trade: Who pays sales tax?

I am considering trading my used boat for another used boat with another person. No broker/dealer involved. Does anybody have any experience doing this? Do we just transfer titles and pay registration fees? Do we both have to pay sales tax on the full value of each boat we are receiving? Let’s assume the boats are equal value. Both of us live in Florida, Any help would be appreciated. Thanks!
Old 05-07-2019, 05:21 PM
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Everybody pays tax. At least here in NY
Old 05-07-2019, 05:22 PM
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Originally Posted by JAMESNV View Post
I am considering trading my used boat for another used boat with another person. No broker/dealer involved. Does anybody have any experience doing this? Do we just transfer titles and pay registration fees? Do we both have to pay sales tax on the full value of each boat we are receiving? Let’s assume the boats are equal value. Both of us live in Florida, Any help would be appreciated. Thanks!
Hey, you don’t tell and I won’t either.
Old 05-07-2019, 05:27 PM
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I did what you did in Miami. We both went to the tag agency and told them what we were doing. No taxes. Equal value. Just paid registration fees.
Old 05-07-2019, 05:42 PM
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Originally Posted by silver01 View Post
I did what you did in Miami. We both went to the tag agency and told them what we were doing. No taxes. Equal value. Just paid registration fees.
Thank you. Anybody else have any experience with this?
Old 05-07-2019, 05:53 PM
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Yup no tax just new regs
Old 05-07-2019, 05:55 PM
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Call the title office or registrar in the morning, which ever the case and get the info straight from the horses mouth. report back what you are told to confirm the above information for the next guy.
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Old 05-07-2019, 06:24 PM
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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
Old 05-07-2019, 06:38 PM
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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
In every way possible
Old 05-07-2019, 06:42 PM
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Pizza still good.
Old 05-07-2019, 06:50 PM
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Trades and trade ins are two different things. NY exempts the trade in credit from sales tax if the seller is a dealer and the item traded/received is intended for resale. Trades among non dealers are taxed.

FL law is ambiguous (chapter 212) but there is only language imposing tax on the full fmv if a non registered seller trades a dissimilar item.
Old 05-07-2019, 07:04 PM
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Did some research on FL tax law chapter 212.

Source https://www.flsenate.gov/Laws/Statutes/2018/212.09

212.09 Trade-ins deducted; exception.—
(1) Where used articles, accepted and intended for resale, are taken in trade, or a series of trades, as a credit or part payment on the sale of new articles, the tax levied by this chapter shall be paid on the sales price of the new article, less the credit for the used article taken in trade.
(2) Where used articles, accepted and intended for resale, are taken in trade, or a series of trades, as a credit or part payment on the sale of used articles, the tax levied by this chapter shall be paid on the sales price of the used article less the credit for the used article taken in trade.
(3) A person who is not registered with the department as a seller of aircraft, boats, mobile homes, or vehicles who is selling an aircraft, boat, mobile home, or vehicle and who takes in trade an item other than an aircraft, boat, mobile home, or vehicle may not use the item as a credit against sales price.
History.—s. 9, ch. 26319, 1949; s. 4, ch. 98-142.
Old 05-07-2019, 07:15 PM
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According to what you posted above, a direct trade of used boats, even up, should NOT require any payment of tax. You should be good to go.
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Old 05-07-2019, 07:15 PM
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I would establish a fair market value for each boat--and I suspect you will pay tax on that. Don't let the tax collector come up with a value!
Old 05-07-2019, 07:18 PM
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Paragraph 3 doesn't seem to apply since the item in trade is one of the same type.

".... item other than an aircraft, boat, mobile home, or vehicle ..."
Old 05-07-2019, 07:18 PM
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Originally Posted by fireisland1 View Post
Pizza still good.
I'm in Florida and I definitely have to give you that one. The little deli stores with awesome food are excellent too. I was on Long Island after Hurricane Sandy and was eating Subway and other chain places until someone told me I was out of my mind for not eating at a deli. I stopped by one nearby and got the best Philly Cheese Steak sandwich I've ever had. I stopped in lots more times before I left the area. Pizza places were so much better than anything I've had in Florida.
Old 05-07-2019, 07:23 PM
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Originally Posted by GaryDoug View Post
Paragraph 3 doesn't seem to apply since the item in trade is one of the same type.

".... item other than an aircraft, boat, mobile home, or vehicle ..."
Exactly. If I’m 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.
Old 05-07-2019, 07:29 PM
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Glad I don’t live in a state that collects sales tax...
Old 05-07-2019, 08:24 PM
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Originally Posted by JAMESNV View Post
Did some research on FL tax law chapter 212.

Source https://www.flsenate.gov/Laws/Statutes/2018/212.09

212.09 Trade-ins deducted; exception.—
(1) Where used articles, accepted and intended for resale, are taken in trade, or a series of trades, as a credit or part payment on the sale of new articles, the tax levied by this chapter shall be paid on the sales price of the new article, less the credit for the used article taken in trade.
(2) Where used articles, accepted and intended for resale, are taken in trade, or a series of trades, as a credit or part payment on the sale of used articles, the tax levied by this chapter shall be paid on the sales price of the used article less the credit for the used article taken in trade.
(3) A person who is not registered with the department as a seller of aircraft, boats, mobile homes, or vehicles who is selling an aircraft, boat, mobile home, or vehicle and who takes in trade an item other than an aircraft, boat, mobile home, or vehicle may not use the item as a credit against sales price.
History.—s. 9, ch. 26319, 1949; s. 4, ch. 98-142.
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.
Old 05-07-2019, 09:22 PM
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Originally Posted by JAMESNV View Post


Thank you. Anybody else have any experience with this?
I am in FL and have done this exact thing.

yes you write “straight trade” under the sale price on the title. Also draw up a bill of sale and write what was traded for what. No sales tax will be charged.

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