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Tax saving question

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Old 03-14-2006, 08:34 PM
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Default 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
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Old 03-14-2006, 08:55 PM
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Default Re: Tax saving question

has to be a trade...

if you sell your car then buy another.......


tax tax tax
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Old 03-14-2006, 09:04 PM
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Default 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.
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Old 03-14-2006, 09:17 PM
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Default 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 $$$.

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ps: to find that photo I was trying to send
Go to t-spm web-site
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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)
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Old 03-14-2006, 09:28 PM
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Default Re: Tax saving question

taxes stink
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Old 03-14-2006, 10:08 PM
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Default Re: Tax saving question

Quote:
Originally Posted by CAP071
taxes stink
Hey,how are the stoop sitters gonna buy crack
unless the workin people pay for them to sit there.
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Old 03-14-2006, 10:35 PM
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Default

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...
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Old 03-14-2006, 10:43 PM
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Default Re: Tax saving question

some brokers may be able to work deals with other brokers on trades. its all just accounting. if you sell on your own though it wont work.
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Old 03-15-2006, 12:32 AM
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Default Re: Tax saving question

Quote:
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...
I was getting ready to say the same thing. That's what they do here.

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
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Old 03-15-2006, 05:53 AM
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Default 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.
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