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boat loan and sales tax ?

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Old 08-29-2005, 08:08 AM
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Default Re: boat loan and sales tax ?

26sonic
No they all do not require you to registar right away. They will however require you to put a lein on the title if they have an interest in the boat. Since the boat is coming in from out of state you can probably get away with driving it for the rest of this year without registaring it in New York. If possible ask for 2 receipts one for actual sale price and one of lesser value for tax purposes. New York can still charge you the full book value of the boat at the time of registar even though you have a receipt for less so be prepaired. You can get some of this money back if you prove that the boat is not worth the book value and have the receipt and statement notorized. There is a form from the DMV web site that you can fill out at the time of sale stateing what the boat was sold at below bookvalue. Hope this helps out a bit. Just went through all this with my new (used) boat in June.
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Old 08-29-2005, 09:01 AM
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Default Re: boat loan and sales tax ?

The bank is going to want their name on the title as a leinholder and they are going to want to see the title to verify that in fact they are on it, you will have to at least transfer the title to your name, thus paying any sales tax that is due at the time of purchase.
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Old 08-29-2005, 11:32 AM
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Default Re: boat loan and sales tax ?

BGIII is correct. We are required to record the lien in favor of the bank and to do that, the state will want their tax. We do have the ability to roll the tax into the loan though. If you have any more specific questions, let me know.
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Old 08-29-2005, 02:29 PM
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Default Re: boat loan and sales tax ?

I want to know more about the tax write off.....
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Old 08-29-2005, 02:42 PM
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Default Re: boat loan and sales tax ?

I purchased my boat from trader1 here on OSO in April of 2004. It was a person to person sale (private) and there was no broker or dealer involved so I didn't pay any sales tax at the time of purchase. I brouhgt the boat back to california and now it's in Arizona. California came after me for sales tax and I just paid it. Now Arizona is after me for the tax also I had to write them a letter that I already paid California the tax.
It's pretty hard to get around it. I didn't want to mess with it and have to pay penalties and fees later that can sometimes be 5x the original amount of tax. They have like 9 years to collect on you.
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Old 08-29-2005, 02:53 PM
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Default Re: boat loan and sales tax ?

Quote:
Originally Posted by Panther
I want to know more about the tax write off.....
For 2004 and 2005 you are able to take a sales tax deduction on your schedule E based on your earned income. In addition to the standard deduction, you can add the tax for large ticket purchases such as cars and boats. The catch is, if you live in a state with a state income tax, you only get to write off one or the other - income tax or sales tax.
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Old 08-30-2005, 09:24 AM
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Default Re: boat loan and sales tax ?

Quote:
Originally Posted by Loan Ranger
For 2004 and 2005 you are able to take a sales tax deduction on your schedule E based on your earned income. In addition to the standard deduction, you can add the tax for large ticket purchases such as cars and boats. The catch is, if you live in a state with a state income tax, you only get to write off one or the other - income tax or sales tax.
Spoke to a friend yesterday who is an accountant. He told me I can only deduct the sales tax if I itemize (which I already do). The caveat is I can only deduct the state income tax or the sales tax, which ever is higher.
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Old 08-30-2005, 06:07 PM
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Default Re: boat loan and sales tax ?

Quote:
Originally Posted by Panther
Spoke to a friend yesterday who is an accountant. He told me I can only deduct the sales tax if I itemize (which I already do). The caveat is I can only deduct the state income tax or the sales tax, which ever is higher.
Yes, that is what I said as well in my post, one or the other.
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