Go Back  The Hull Truth - Boating and Fishing Forum > BOATING FORUMS > The Boating Forum
Reload this Page >

Private boat trade: Who pays sales tax?

Notices
Like Tree11Likes

Private boat trade: Who pays sales tax?

Old 05-07-2019, 05:18 PM
  #1  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Aug 2014
Location: Boynton Beach
Posts: 37
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!
JAMESNV is offline  
Old 05-07-2019, 05:21 PM
  #2  
Admirals Club Admiral's Club Member
 
fireisland1's Avatar
 
Join Date: Jun 2011
Posts: 4,195
Default

Everybody pays tax. At least here in NY
fireisland1 is online now  
Old 05-07-2019, 05:22 PM
  #3  
Senior Member
 
Join Date: Sep 2013
Location: UsA
Posts: 1,443
Default

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.
halfwaythere is offline  
Old 05-07-2019, 05:27 PM
  #4  
Senior MemberCaptains Club Member
 
Join Date: Oct 2006
Location: Miami,FL
Posts: 980
Default

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.
mark101, Jumpsummo and oneoverpar like this.
silver01 is offline  
Old 05-07-2019, 05:42 PM
  #5  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Aug 2014
Location: Boynton Beach
Posts: 37
Default

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?
JAMESNV is offline  
Old 05-07-2019, 05:53 PM
  #6  
Senior Member
 
Join Date: Mar 2014
Posts: 661
Default

Yup no tax just new regs
Stang4u2nv is offline  
Old 05-07-2019, 05:55 PM
  #7  
Senior Member
 
Join Date: Aug 2016
Location: Ohio
Posts: 2,376
Default

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.
Bayou Dularge likes this.
Lookinup76 is online now  
Old 05-07-2019, 06:24 PM
  #8  
Admirals Club Admiral's Club Member
 
fireisland1's Avatar
 
Join Date: Jun 2011
Posts: 4,195
Default

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
fireisland1 is online now  
Old 05-07-2019, 06:38 PM
  #9  
Senior Member
 
Join Date: Aug 2016
Location: Ohio
Posts: 2,376
Default

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
Lookinup76 is online now  
Old 05-07-2019, 06:42 PM
  #10  
Admirals Club Admiral's Club Member
 
fireisland1's Avatar
 
Join Date: Jun 2011
Posts: 4,195
Default

Pizza still good.
muffinman51432 and Lookinup76 like this.
fireisland1 is online now  
Old 05-07-2019, 06:50 PM
  #11  
Senior MemberCaptains Club Member
 
Join Date: Jul 2006
Location: RI
Posts: 6,458
Default

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.
BACKTOTHESEA is offline  
Old 05-07-2019, 07:04 PM
  #12  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Aug 2014
Location: Boynton Beach
Posts: 37
Default

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.
JAMESNV is offline  
Old 05-07-2019, 07:15 PM
  #13  
Senior Member
 
Join Date: Nov 2006
Location: Kent Island, MD
Posts: 2,033
Default

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.
JAMESNV likes this.
mikie is offline  
Old 05-07-2019, 07:15 PM
  #14  
Senior MemberCaptains Club Member
 
Join Date: Nov 2002
Location: Pensacola, Fl
Posts: 11,226
Default

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!
thataway is offline  
Old 05-07-2019, 07:18 PM
  #15  
Admirals Club Admiral's Club Member
 
Join Date: Mar 2017
Location: Tarpon Springs, FL
Posts: 2,532
Default

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 ..."
GaryDoug is offline  
Old 05-07-2019, 07:18 PM
  #16  
Admirals Club Admiral's Club Member
 
Join Date: Feb 2014
Location: Panama City, FL
Posts: 313
Default

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.
rickpcfl is offline  
Old 05-07-2019, 07:23 PM
  #17  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Aug 2014
Location: Boynton Beach
Posts: 37
Default

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.
JAMESNV is offline  
Old 05-07-2019, 07:29 PM
  #18  
Senior Member
 
Join Date: Jan 2019
Location: Silverton, Oregon
Posts: 177
Default

Glad I don’t live in a state that collects sales tax...
Dan_F is offline  
Old 05-07-2019, 08:24 PM
  #19  
Senior Member
 
Join Date: Mar 2003
Location: North Carolina
Posts: 566
Default

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.
Tominator is offline  
Old 05-07-2019, 09:22 PM
  #20  
Admirals Club Admiral's Club Member
 
Join Date: Aug 2007
Location: Fort Walton Beach, FL
Posts: 1,479
Default

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.
ucf_motorcycle is offline  

Thread Tools
Search this Thread