Like Tree0Likes

Boat sale from US to Canada...Help.

Reply
Old 01-20-2005, 11:29 PM
  #1
Registered
Thread Starter
Trade Score: (1)
 
grand-illusion's Avatar
 
Join Date: Mar 2002
Location: Ham Lake, MN
My Boats: 50' Hustler - "Nasty Girl"
Posts: 137
Default Boat sale from US to Canada...Help.

Hoping someone has been down this road before...
I have a guy in Canada very interested in my boat and we have agreed on a price. Only problem is once you tack on all the taxes (about 15%: 8% GST and 7% license he tells me) it puts him over his budget. It's a private party purchase from a private party. Is there any way around this or some way to reduce it ???? Feel free to PM me if you have info you would rather not post. Thanks.

Another question...if I was to take his boat or other object on trade, are these taxes applied to the difference in value or still the value of the boat?

Last edited by grand-illusion; 01-21-2005 at 10:52 AM.
grand-illusion is offline  
Reply With Quote
Old 01-20-2005, 11:34 PM
  #2
Registered
Platinum Member
Trade Score: (3)
 
tomtbone1993's Avatar
 
Join Date: Sep 2003
Location: LAKE CONROE, TX
My Boats: 42 FOUNTAIN / MALIBU
Posts: 15,486
Default Re: Boat sale from US to Canada...Help.

creative paperwork
tomtbone1993 is offline  
Reply With Quote
Old 01-21-2005, 06:45 AM
  #3
Registered
 
Join Date: Jan 2002
Location: OAKVILLE, Ontario
Posts: 1,402
Default Re: Boat sale from US to Canada...Help.

the customs broker gets the GST up front and the PST is paid on licensing. If he cant afford the taxes how can he run a boat?
buckknekkid is offline  
Reply With Quote
Old 01-21-2005, 07:32 AM
  #4
Registered
 
Canada Jeff's Avatar
 
Join Date: Dec 2003
Location: Ottawa, Ontario,Canada baby!
My Boats: Sunsation and Apache
Posts: 1,566
Default Re: Boat sale from US to Canada...Help.

License in US. If buddy has the capability to, that solves alot of problems.
Canada Jeff is offline  
Reply With Quote
Old 01-21-2005, 08:51 AM
  #5
Platinum Member
Platinum Member
 
Ran-Dom 32's Avatar
 
Join Date: Sep 2002
Location: Lake St. Clair
My Boats: Fountain 42 EX Done Deal aka "Big Sexy"
Posts: 1,930
Default Re: Boat sale from US to Canada...Help.

Reduce the bill of sale amount to save on taxes. You pay tax on Canadian Dollar value of sale price.
Ran-Dom 32 is offline  
Reply With Quote
Old 01-21-2005, 09:09 AM
  #6
Registered
 
Bam Bam's Avatar
 
Join Date: Aug 2002
Location: Toronto, Canada
My Boats: Active Thunder 25
Posts: 129
Default Re: Boat sale from US to Canada...Help.

Quote:
Originally Posted by Ran-Dom 32
Reduce the bill of sale amount to save on taxes. You pay tax on Canadian Dollar value of sale price.
Ran-Dom is right, the boat I own now I imported from the U.S. via a private sale. Offer to write two bills of sale. One for the actual of what he paid and one for him to present to Canada customs when he crosses the border with the boat. He will also need a separate bill of sale for the boat and motor and another for the trailer. He will pay GST + PST on the boat at the border and GST on the trailer at the border. He will pay the PST on the trailer when he goes to licence it.
Bam Bam is offline  
Reply With Quote
Old 01-21-2005, 09:36 AM
  #7
Registered
 
fund razor's Avatar
 
Join Date: Mar 2004
My Boats: Apache 28 Brave
Posts: 8,170
Default Re: Boat sale from US to Canada...Help.

Yep.. I sold a boat to a guy from near Toronto.
fund razor is offline  
Reply With Quote
Old 01-21-2005, 11:26 AM
  #8
Registered
 
ofshore's Avatar
 
Join Date: Jun 2003
Location: SE, Michigan
Posts: 933
Default Re: Boat sale from US to Canada...Help.

Quote:
Originally Posted by buckknekkid
the customs broker gets the GST up front and the PST is paid on licensing. If he cant afford the taxes how can he run a boat?

That's what i was thinking. it's amazing how no matter what price you agree on it's always just a few k over budget.
ofshore is offline  
Reply With Quote
Old 01-21-2005, 07:44 PM
  #9
VIP Member
VIP Member
 
offshoredrillin's Avatar
 
Join Date: Feb 2004
Location: Maryland
My Boats: 00 Cig Tiger,74 Cig 20'
Posts: 10,945
Default Re: Boat sale from US to Canada...Help.

basically its like it is here in the states, you understate the purchase price in order to save the taxes. Sometime they may charge you based on book value. May have to make the bill of sale say boat is sold "as is" and not running. not running could be an agreement between the two of you to just not turn the key
offshoredrillin is offline  
Reply With Quote
Old 01-22-2005, 01:08 PM
  #10
Registered
 
Team V's Avatar
 
Join Date: Jun 2001
Location: Boonville, NY USA
My Boats: Formula 29PC
Posts: 621
Default Re: Boat sale from US to Canada...Help.

Been there done that...

Huge cash down payment helps... subtracted from the "real" purchase price. (legally he can carry something like $5K cash across the border without declaring it, sometimes it might even be necessary to make two or three trips ) Creative paperwork, and two bills of sale... or just the lowest one... who cares as long as you got your money (unless of
course, YOU need to prove where the money you received came from). If he is financing it
all, it could get sticky for him to hide a paper trail.... HE may not want to risk it, and may be more comfortable doing it on the "up and up".

Do yourself a favor, let him take it across the border, or make all the arrangements... even if you meet him there... have him come into the U.S., hook it up, and take it over... get in your truck and run the other way!!
Seriously, I took a boat to the border for a Canadian buyer... had the Canadian customs all over me... "what are you doing?", "you can't park there", "park over there" "you can't park here!! park it over there", "what the %@# do think you are doing!!"
What a nightmare that was.

If he wants a smooth border crossing, he needs to call or visit the customs ahead of time, get everything lined up, and the "ducks in a row". Yes, he must pay all the Canadian taxes, and register it in Canada before it goes across (his headache). I'm not sure if he HAS to license the trailer right then on the spot??? They don't hand out trailer plates at the border... I let him keep my NY trailer plate and he mailed it back to me... no big deal if he had kept it... all I had to do was cancel the reg, DMV didn't need the plate back. ( I needed it back to "temporarily" get my next rig home before all the taxes )

He may just be haggling for you to give in in a couple $$.... in which case you need to decide if it's a deal breaker or not....

Oh yeah, make sure you can read your hull AND trailer VIN numbers clearly... my Eagle trailer VIN was on a sticker that was all faded, the more you rubbed it to see the numbers... the more they got erased! (that was a close call, wheew) And make sure he has a lien release if necessary... if the paperwork isn't 100% They may impound it for 3 days for it to clear customs. (Or they may even if it is 100%) That's where it is important to let them know it's coming, and exactly what you need to clear customs.
Team V is offline  
Reply With Quote
Reply

Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
dreamer
General Boating Discussion
11
06-03-2008 10:36 PM
dbhammer
Nor-Tech
3
05-29-2008 03:34 PM
packinair
General Boating Discussion
8
03-16-2007 10:47 PM
sakoutis3
General Boating Discussion
3
06-07-2006 08:27 PM
Anarchy Powerboats
General Boating Discussion
9
07-23-2005 12:28 AM



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 12:38 AM.


Copyright 2011 OffShoreOnly. All rights reserved.