New boats & Taxes
 

I was talking to someone at a recent boat show. They said that if you trade a boat in on a new boat, there are some tax advantages with sales tax? As opposed to trading a boat in on a used boat.

Does anyone know anything more about this? If so, can you give more insight and examples?

This was news to me, never heard that before.

Mark

Usually the only ones that get advantages when it comes to taxes is the damn government!
Sour Grapes in Big Rapids :mad:

I'm not sure about the difference between trading for new vs. used but Troutly is correct for many states. Remember, that is a state to state law and can vary. For example, in Florida you only pay tax on the difference in sales price for the two vehicles and the tax you do pay is at a reduced rate on boats. Makes sense since you already paid tax on the first boat anyways. But, when I lived in Maryland, no dice. You paid tax on the full purchase price regardless of trade, down payment, whatever. Hence the reason I moved out of Maryland (other than the obvious weather problems). When I lived in Maryland, I paid federal tax of course, state tax, county tax, and a local tax for the city I lived in. Ridiculous!

Mike

Troutly is right,same law applies here in texas also,mark

I guess every state is different. Currently trying to buy a new boat and here in North Carolina there is a cap of $1500.00. Call your local department that handles it to know for sure.

Thanks troutly. I had never heard of that till just this weekend.

Now, that sparks another question, since it's state law, does that apply to everything, like cars/trucks? Or just certain things in your case.

I wonder because, if it applies to say your truck in MN AND boat, well, then I doubt MI has that law. I know on new vehicles we pay full tax, no matter what.

Mark

You only pay the tax on the difference.

You can get a PO Box in Deleware and pay no tax if you register the boat in Deleware.

The tax man doesn't like that loophole at all.