Buying and selling private

I looked at several 48 DAs before settling on the 50DA. Both are really awesome boats yet with pretty different layouts. I always stop and look at the 48 when they are docked. Such pretty lines.

I tired the private listing thing with my 50 but I think there comes a point when people are much more comfortable using a broker for larger and more expensive boats.

My boat has been listed for just over a week now. Hope it sells quickly!!
 
Sales tax on private sales? To me that seems unconscionable. In my state, at least for now private sales are untaxed. You might look into the laws in your state to see if there are any loopholes or workarounds.
 
I used to try and plan large procurements to make the best in SALT deductions on the Fed returns. Now that they have made itemization less attractive, it seems more a mental exercise....
But it's worth a discussion with your CPA.
 
sbw1 said:
I sold a boat to a private buyer and the buyer wanted me to lie about the selling price so he could avoid some sales tax. I refused to do that. I did give him the title when his check cleared and did not put the selling price on the old registration. He must have perjured himself to the Secretary of State when he renewed the registration because the SOS collects the sales tax. That was in 1986. I believe the procedure has been revised because more recently I read up on selling used cars and boats. Now the seller needs to keep a copy of the transaction including selling price and related details to accurately determine sales tax. Failure to do so is punishable. It’s not worth the hassle in Michigan to lie about sales tax in my view. The State is pretty good at detecting evasion, and has a pretty good idea of values when it comes to cars. Boats…maybe not so much. However, it’s probably not worth dodging the tax when you consider the penalties and interest for the few bucks involved if audited. Then there is the ethical issue as well.
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I agree with this sentiment but I also think it's garbage that the state gets their 6% every single time a car/boat is sold over it's entire lifetime.
 
If you can find a private buyer for your boat in a hurry you may be able to bring the deal to a broker and have him do an in-and-out transaction for a flat fee, far below the typical 10%. This will give you the sales tax advantage you're looking for. I've done this once with a boat and several times with cars.
 
Cash in hand, and write a check for the difference. IIRC you can use the canceled check/checks as a receipt and register your new boat off of that. As others have said, in the aggregate of the sale, is it worth it? Maybe, maybe not…..

My worthless .02 cents

If this sale happens, Congratulations!
 
copb8tx said:
If you can find a private buyer for your boat in a hurry you may be able to bring the deal to a broker and have him do an in-and-out transaction for a flat fee, far below the typical 10%. This will give you the sales tax advantage you're looking for. I've done this once with a boat and several times with cars.
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That's how it's done in WI. You're doing it in one transaction then, making it look like one boat is a trade in on the purchase of the other boat, sales tax is paid only on the difference.
 
Blueone said:
It’s a bit of a story but a 48 fell in my lap this morning. I still have first refusal on the original. Going to look at it tomorrow 2006 all white heavily upgraded.
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I think having a new screen name of "Whiteone" could cause some, ah, consternation amongst our more liberal members... ;)
 
sbw1 said:
How do you evade the tax without stretching the facts?
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When you sell your boat in Michigan and then buy another one you are eligible to avoid the 6% state tax based on the amount you sold your boat for and what the new one cost. This only applies when you then buy another boat of greater value.

So if Billy Joe Sells his boat for $100,000 then buys his next boat for $200,000 he would only need to pay the State $6,000 on sales tax vs $12,000.

There are stipulations around eligibility. Not sure why you are accusing Blue of tax evasion.

 
Stee6043 said:
I agree with this sentiment but I also think it's garbage that the state gets their 6% every single time a car/boat is sold over it's entire lifetime.
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double, triple and quadruple taxation.
 
Great lakes pirate said:
When you sell your boat in Michigan and then buy another one you are eligible to avoid the 6% state tax based on the amount you sold your boat for and what the new one cost. This only applies when you then buy another boat of greater value.

So if Billy Joe Sells his boat for $100,000 then buys his next boat for $200,000 he would only need to pay the State $6,000 on sales tax vs $12,000.

There are stipulations around eligibility. Not sure why you are accusing Blue of tax evasion.

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The sale has to be managed by a dealer to make this happen. Bill Joe can't do this on his own...

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