EllisJuan Posted May 5, 2016 Posted May 5, 2016 Is it common/acceptable to ask the seller of a used boat to record a sale price lower than it actually is? I am planning on buying a boat in a few days, it looks like the tax I will need to pay when registering is pretty hefty. I know not to write in a ridiculously low price, but I am paying well above NADA, which appears to be less than market value. Even if the book value was used, it would be helpful. Also, do you pay tax on only the hull, or the whole package? We could do separate bill of sales.
Kevin22 Posted May 5, 2016 Posted May 5, 2016 Its illegal, so no. You pay vehicle/boat/rv sales tax on the whole purchase (total amount), seller pays income tax on whole amount. You will be charged for registering the hull with the state, plus transfer fees on all titles (boat and trailer). If the boat, motor, and trailer all have separate sales records or titles be sure the seller divides the total amount and writes it on each one. For instance if you pay 6000, that would be 2000 on motor, 2000 on boat, 2000 on trailer, not 6000 on all or you will be paying sales tax on $18,000. If all 3 are on one title then you write $6000 on the sales record. 1
Super User gulfcaptain Posted May 5, 2016 Super User Posted May 5, 2016 So what you're asking is that the seller write you a false bill of sale to save you money that YOU owe in taxes for the purchase that would otherwise be owed which would be well tax fraud.....so I'd say no.
EllisJuan Posted May 5, 2016 Author Posted May 5, 2016 7 minutes ago, gulfcaptain said: So what you're asking is that the seller write you a false bill of sale to save you money that YOU owe in taxes for the purchase that would otherwise be owed which would be well tax fraud.....so I'd say no. Not exactly...more like sell me the boat for the market price, and sell me the thousands of dollars worth of high end electronics on it separately. 14 minutes ago, Kevin22 said: Its illegal, so no. You pay vehicle/boat/rv sales tax on the whole purchase (total amount), seller pays income tax on whole amount. Are you sure that is the law in Tennessee? I am fairly certain that in Florida, where I am from, you only pay tax on the hull.
Super User gulfcaptain Posted May 5, 2016 Super User Posted May 5, 2016 1 minute ago, EllisJuan said: Not exactly...more like sell me the boat for the market price, and sell me the thousands of dollars worth of high end electronics on it separately. Ah, kinda like I'll sell you these superbowl tickets for a thousand over face value, but that extra thousand I'm charging you for isn't for the tickets, it's for my autograph so I'm not scalping you the tickets. The electronics are part of the sale price of the boat and you said you're still under the market value. Still sticking with the answer I gave you earlier.
EllisJuan Posted May 5, 2016 Author Posted May 5, 2016 6 minutes ago, gulfcaptain said: Ah, kinda like I'll sell you these superbowl tickets for a thousand over face value, but that extra thousand I'm charging you for isn't for the tickets, it's for my autograph so I'm not scalping you the tickets. The electronics are part of the sale price of the boat and you said you're still under the market value. Still sticking with the answer I gave you earlier. I am definitely not paying under market value...NADA for a '06 Tracker Pro Team 175 with trailer and motor is ~$5k. I am seen well equipped ones go for close to $10k. I am paying somewhere in between.
Super User gulfcaptain Posted May 5, 2016 Super User Posted May 5, 2016 35 minutes ago, EllisJuan said: but I am paying well above NADA, which appears to be less than market value. A boat is only worth what someone will pay for it. You agreed to pay what you paying. As for an 06 Pro 175, about 5K s about as much as I'd pay for it well equiped. Pay the fees and enjoy the boat. TW and the bait monkey will understand.
Kevin22 Posted May 5, 2016 Posted May 5, 2016 17 minutes ago, EllisJuan said: Not exactly...more like sell me the boat for the market price, and sell me the thousands of dollars worth of high end electronics on it separately. Are you sure that is the law in Tennessee? I am fairly certain that in Florida, where I am from, you only pay tax on the hull. Could be. Some are just hull some are the whole package.. I have no clue what the laws are in tennesee or florida, I just named the most restrictive and if I'm wrong then yay for you! lol I suppose you could have him remove the electronics from the sale since they technically are not part of the original boat, and just buy those from him separately. Dunno how that would work in terms of state taxes, I know on his end he is paying income tax on everything. You would have to pay with two checks (or cash), one for the boat and one for the electronics I'm sure. That seems like it would be different than just writing in a lower amount (tax fraud) as we originally thought you were asking about. I'm no lawyer though.. if in doubt call one.
Super User WIGuide Posted May 5, 2016 Super User Posted May 5, 2016 Even though it is usually illegal (depending on state) it happens all the time. Depending on the state, you may be able to only put the boat purchase price down. It would be worth checking out the state laws to see.
Super User A-Jay Posted May 5, 2016 Super User Posted May 5, 2016 8 hours ago, EllisJuan said: Is it common/acceptable to ask the seller of a used boat to record a sale price lower than it actually is? Yes ~ It's perfectly common place for those you routinely live criminal, felonious, illegitimate, illicit, lawless, unlawful, & wrongful type lives. For the rest of us, who strive to live decent, good, honest, honorable, just, moral, right, righteous, right-minded, straight, true, & virtuous type lives, then the answer there would clearly be no. Sadly, the numbers of us in the above group seem to be dwindling at an alarming rate with each new generation. A-Jay 4
Super User flyfisher Posted May 5, 2016 Super User Posted May 5, 2016 I will echo some of the other posts. Yes you can do it and no you shouldn't since it is illegal in all the states i know of. Here in Virginia they ask you for purchase price and then you pay tax on that. Here we are also blessed to have personal property tax which is levied by the county but they don't care what you paid for it, they base it on blue book value and you get that lovely bill in the mail every year.
Super User Fishes in trees Posted May 5, 2016 Super User Posted May 5, 2016 Jimny Cricket said, "Let your conscience be your guide." In this case, that 's good advice. If you want to cheat on your taxes, that's your karma. Basically, what you're asking for here is permission. Skimming over the past few posts, you've got your answer.
Super User BrianinMD Posted May 5, 2016 Super User Posted May 5, 2016 It is illegal and should be the end of this discussion on BR. Do people do it yes, people commit other crimes everyday also. Getting away with it does not make it okay.
Super User J Francho Posted May 5, 2016 Super User Posted May 5, 2016 Yes, illegal. I don't care what your excuse is for breaking the law, but ANY DISCUSSION OF ILLEGAL ACTIVITY IS FORBIDDEN HERE. Please read through the Forum Rules & FAQs if you need clarification. 1
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