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Two Brothers

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Old 10-10-2018, 02:14 PM
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My Brother and I are looking to buy a boat...and after a couple of years one of us may look to upgrade while the other won't want too. OR I'll just get tired of sharing a boat with that pain in the ass. JK

Of course we don't want to pay sales tax twice...so what is the best way to handle this?
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Old 10-10-2018, 02:23 PM
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This is the quickest way to get into a brotherly dispute - just buy a boat together, I mean what could possibly go wrong??


Just kidding
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Old 10-10-2018, 02:38 PM
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Originally Posted by FishHarder View Post
My Brother and I are looking to buy a boat...and after a couple of years one of us may look to upgrade while the other won't want too. OR I'll just get tired of sharing a boat with that pain in the ass. JK

Of course we don't want to pay sales tax twice...so what is the best way to handle this?
. . . . . and you expect a complete stranger to answer a potential issue with your brother?
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Old 10-10-2018, 02:43 PM
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Originally Posted by First Light View Post
. . . . . and you expect a complete stranger to answer a potential issue with your brother?
no, I am asking how to avoid paying sales tax twice.

how we share the boat is our issue alone to solve.
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Old 10-10-2018, 02:47 PM
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When you sell the boat to him charge him $1
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Old 10-10-2018, 02:49 PM
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Originally Posted by Clamdigger II View Post
When you sell the boat to him charge him $1
yup! The dollar makes it a legal transaction. Other money's can be passed under the table so to speak
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Old 10-10-2018, 02:53 PM
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Originally Posted by GoneNdoneit View Post

yup! The dollar makes it a legal transaction. Other money's can be passed under the table so to speak
Don't know about Florida, but won't work in most states, as state gets to assess actual value at time of sale//transfer.
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Old 10-10-2018, 02:54 PM
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Put the boat in a corporation. 50/50 partnership.
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Old 10-10-2018, 02:58 PM
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Originally Posted by Uncas View Post
Don't know about Florida, but won't work in most states, as state gets to assess actual value at time of sale//transfer.
was unaware of that. Has worked in NC
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Old 10-10-2018, 03:11 PM
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FL is cake to do, gift or even trade. I trade for everything the DMV knows about.
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Old 10-10-2018, 03:13 PM
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Originally Posted by nhmetalguy View Post
Put the boat in a corporation. 50/50 partnership.
Corporation costs, shell corp concerns since there isn't any revenue, potential insurance problems if a corporation owns it. Think about that for awhile.
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Old 10-10-2018, 03:17 PM
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Originally Posted by bamaboy473 View Post
Corporation costs, shell corp concerns since there isn't any revenue, potential insurance problems if a corporation owns it. Think about that for awhile.
My boat is in corporate name never had a problem with insurance. Since it is Florida you pay tax on the hull not the motors so maybe one pay for the motors and goes on the title as lean holder. But pretty sure you can sell for $ or gift it and it won't effect insurance value. Never had an insurance company ask how much I paid for the boat they go off book value for replacement. Had to show receipts for updated electronics to increase that coverage though.
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Old 10-10-2018, 03:33 PM
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Is your Corp a for-profit business instead of being set up just to buy a boat?
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Old 10-10-2018, 03:43 PM
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In PA you can gift yourself or a family member real estate or a vehicle. I would check that out, I have done a few $1 transfer transactions on $500K+ real estate as long as it’s immediate family.
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Old 10-11-2018, 12:18 PM
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thanks guys

It's a 100k boat, so I don't think I can do gifting or bartering.

The 1$ thing is an idea..will look into that...I know it work for real estate...but there is no sales tax on real estate

I am looking into putting it in both of our names. Who ever keeps it..pays the other guy...we pay half and half to start?
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Old 10-11-2018, 12:44 PM
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I would also have a signed document stating how you will determine fair market value later on.


Philly has a 4.5% transfer tax and the $1 sale is no problem to immediate family.
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Old 10-11-2018, 12:48 PM
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why not just title it as one brother AND / OR other brother. Just like a married couple might do with a car?
it is the boat that gets taxed, not, per say the owners.
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Old 10-11-2018, 01:18 PM
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Question is; if one of you get into a financial pickle and need that capital from the boat, can the other complete a financial buyout? Otherwise, I am not understanding the problem of your name and his name being on the title together. In Florida, it's a recreational vehicle and all parties need to be present to sign for ownership. You pay one time sales tax because it's one transaction.
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Old 10-11-2018, 01:20 PM
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when i bought my boat, at the DMV for registration all they do is ask the purchasing price then calculate the taxes. so i just said $500 and paid a little in taxes and on my way. they did not look at it, did not ask for receipt of sale, did not question the condition of the boat. basically they dont give a shit!
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Old 10-11-2018, 01:35 PM
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Originally Posted by FishHarder View Post
thanks guys

It's a 100k boat, so I don't think I can do gifting or bartering.

The 1$ thing is an idea..will look into that...I know it work for real estate...but there is no sales tax on real estate

I am looking into putting it in both of our names. Who ever keeps it..pays the other guy...we pay half and half to start?
Any financing or is it a cash deal?
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