Tax saving question
#1
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Tax saving question
I am in the process of selling my boat and looking for another boat to replace it. I was under the impression that if I sold my boat for $172,000 that if I bought a boat for less than that I would not have to pay tax or if I spent 200000 than I would pay tax on 28000. My broker at this point is telling me that I have to purchase something he has or has on order foe that to happen? This makes no sense to me. That means I can't buy anything used and that I would have to pay full tax on any other boat than what he sells! Does anyone know if this true and is there any way around this if it is? Thanks
#3
Charter Member # 55
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Re: Tax saving question
Yep, just buying and selling cars. If you trade it in, you only pay sales tax on the difference. If you sell outright and then buy something else, you pay sales tax on the entire purchase price of the new one.
#4
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Join Date: Apr 2005
Location: Long Island New York
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Re: Tax saving question
Hey B
He's correct.
That situation applies to trade-ins.
You would only have to pay the tax on the differance of the two boats. If you buy from a private sale you'll pay the sales tax based on the purchase price when you register the new boat. The same applies if you buy a boat from a different dealer. You'll wind up paying the full tax $$$.
ray
ps: to find that photo I was trying to send
Go to t-spm web-site
Go to Links
Click on Sharkey Marine
Go to Photo Links
Go to Hot Toddy Run @ ScreamandFly.com 10-1-05
Scroll down and click page 3
You'll need to register on that site to get a full pic (its free)
He's correct.
That situation applies to trade-ins.
You would only have to pay the tax on the differance of the two boats. If you buy from a private sale you'll pay the sales tax based on the purchase price when you register the new boat. The same applies if you buy a boat from a different dealer. You'll wind up paying the full tax $$$.
ray
ps: to find that photo I was trying to send
Go to t-spm web-site
Go to Links
Click on Sharkey Marine
Go to Photo Links
Go to Hot Toddy Run @ ScreamandFly.com 10-1-05
Scroll down and click page 3
You'll need to register on that site to get a full pic (its free)
#7
Platinum Member
Platinum Member
NH rules.
Some states like Vermont give you a credit for a certain amount of time to buy a new one ... I think it's 60 days...
I'm not positive because my boat is based in New-Hampshire also...
Some states like Vermont give you a credit for a certain amount of time to buy a new one ... I think it's 60 days...
I'm not positive because my boat is based in New-Hampshire also...
#9
Registered
Re: Tax saving question
Originally Posted by GLH
NH rules.
Some states like Vermont give you a credit for a certain amount of time to buy a new one ... I think it's 60 days...
I'm not positive because my boat is based in New-Hampshire also...
Some states like Vermont give you a credit for a certain amount of time to buy a new one ... I think it's 60 days...
I'm not positive because my boat is based in New-Hampshire also...
Keep in mind, just because it's a certain way in your state that doesn't mean it's that way everywhere.
We can sell, purchase new or used within 90 days, and then only pay tax on the difference of the sale and or trade.
Or course we don't pay sales tax on used boats either. Regardless of price, not one penny of sales tax is paid on a used boat.
Buck
#10
Registered
Re: Tax saving question
I disagree with most of the above post. Most car dealers (and Boat dealers) are not familiar with what is known as a "1031 Personal Property Exchange". A 1031 is most often used with Real Estate, however, this exchange also applies to: Trailers, Containers, Construction Equipment, Barges, Airplanes, Buses, Office Furniture, even Artwork.
Check out www.IPX1031.com for more info.
I'm not an accountant, so I'd reccomend checking with one.
Good Luck.
Check out www.IPX1031.com for more info.
I'm not an accountant, so I'd reccomend checking with one.
Good Luck.