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Tax haven

Discussion in 'General Yachting Discussion' started by ArielM, Aug 23, 2010.

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  1. ArielM, Aug 23, 2010
    #1
    ArielM

    ArielM Senior Member

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    So i am looking at purchasing a yacht in FL and bringing it over to CA. There boat will be transported through Mexico. Is there any ways to avoid sales tax on this? I know there was a period in time where if you kept the boat out of state of 90 days you could avoid the heavy sales tax. does this still apply? Now if i purchase an LLC and that LLC happens to own a yacht, does the yacht get taxed? I dont see how it should. Now what if the previous owner changes the yacht from his name to a an LLC is there a period of time the owner has to wait before he sells it? Any input on this would be great.
  2. Pascal, Aug 23, 2010
    #2
    Pascal

    Pascal Senior Member

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    you wont' pay tax on teh boat in FL but need to deal with Ca.

    the only valid advice is to consult a maritime attorney familiar with the laws of the states the boat will be in. he will be able to tell you where you're best homeporting/flagging the boat as well as give you details on the various issues this may raise.
  3. PropBet, Aug 24, 2010
    #3
    PropBet

    PropBet Senior Member

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    There are a variety of ways to do this, either with & without LLC's, Corps, offshore entities, Nevada Corps, Blind Trusts, etc. At the end of the day, if you have a US flag on the boat, it's a bit trickier, however a tax of some sort is going to be paid somewhere along the line. I assure you that. Be it the tax itself, or the amount of money you spend trying to avoid the tax.

    The wiser design is having a corporation own the boat to shelter it.

    Your best bet is to contact a maritime attorney and get direct council on it based on your situation as this really opens up a ball of wax that it be best discussed with trusted council.

    Your chosen attorney can also advise you on the mechanics of the tax cap that was just voted in, in the state of Fl.
  4. ArielM, Aug 24, 2010
    #4
    ArielM

    ArielM Senior Member

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    Thanks guys.
  5. yachtbrokerguy, Aug 24, 2010
    #5
    yachtbrokerguy

    yachtbrokerguy Guest

    Florida wil not charge sales tax to a non resident who does not intend to keep the boat in Florida and removes the boat within 180 days. Some non resident buyers will choose to pay the new maximum tax of $18,000 to Florida so that they can keep the boat in Florida or bring it back later. This amount was calculated to compete in price with registering the boat in a different country with legal fees and related expenses
    As Pascal said you need to deal with CA and so you should consult with a maritime attorny in CA as they know what the current situation is now. The regulations have changed and might change again.
  6. YES!, Aug 24, 2010
    #6
    YES!

    YES! Senior Member

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    Curious as to what you mean "transported through Mexico"? Assume the intent is to sail to CA via the Panama Canal?

    Just checking in case there is a new short cut that I missed.....
  7. PropBet, Aug 24, 2010
    #7
    PropBet

    PropBet Senior Member

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    My guess was sailed across the gulf, on a trailer / through Mexico, then back in the water and north to the People's Republic of California. However size of boat will obviously drive this scenario.