I'm completing the purchase of my 06' 185 Sport tomorrow and need to create a bill of sale for both the motor and boat (Canadian tax purposes). The tax rate on the motor is less than that on the boat and I'm just looking for some guidance on applying a fair ratio/split. I was thinking 60% motor/40% boat however would welcome any guidance.
2006 185 - Engine to Boat Price ratio? 60% Engine - 40% Boat?
- Thread starter pfitzsim
- Start date
Good question - I have never given it any thought, before. Will have to think on it.
But... Given it's a stern drive, are you SURE you need to do that? I could understand if it's an outboard, but even then... it's a "package" from the factory. Part of the reason I ask is that we sell a number of used boats to Canadians every year and this has NEVER been brought up, before. I can't remember a single time where the customer asked us to write separate bills of sales. Again, because it's a package setup - direct from the factory that way. It's not like you bought the two separate.
But... Given it's a stern drive, are you SURE you need to do that? I could understand if it's an outboard, but even then... it's a "package" from the factory. Part of the reason I ask is that we sell a number of used boats to Canadians every year and this has NEVER been brought up, before. I can't remember a single time where the customer asked us to write separate bills of sales. Again, because it's a package setup - direct from the factory that way. It's not like you bought the two separate.
Hi Dennis, my understanding is that the tax 'process' for a private sale is slightly different than that of a dealer (and an import differs further). I don't have to split the boat/motor however will pay less tax if doing so (more $ for other boat goodies). Thanks.
Gofirstclass
Well-Known Member
Please don't take offense at my comment, but if it's a boat that's 11 years old (by way of comparison, mine is 22 years old) how much savings could you get by splitting them? Is it worth the effort and extra paperwork to do that?
13% tax on the boat and no tax on the motor so savings are 'significant' enough (>$1,000) in IMO for printing and signing two vs one bill of sale Word docs. At a minimum it's a few tanks of gas and an entry level GPS unit. Cheers.
bahamabreisus
Well-Known Member
- Oct 25, 2007
- 2,555
- Boat Info
- 370 dancer, previous 500,420,390,300 dancers
- Engines
- 454 CI MPI
I would say you are 90% motor, 10% boat. Think, how much could you sell just a hull for ? Motor and drive are were the money is. Many years ago I bought my first boat, a 18 foot runabout, $7400.00 boat motor and trailer. I figure the trailer then at about $700, To buy the motor only would have been $5000, rest was boat. Not much left for boat.
Blkbird
Active Member
If the rebuild of my CAT engines is any indication, 56% engine to 44% boat is about right. No points left for blood and sweat though.
It's hard to get an accurate figure for this. Honestly, I'm personally not even aware of a way to do this. You can get a used "book" value for an outboard, but not for a stern drive. If you use a "replacement cost" for a stern drive package, will that isn't very accurate since that's a new price and the existing one isn't new. It's also hard to base it on selling one without the other. Both are worth much less by themselves - in other words, they are worth more as a package than apart.
I think if you stick somewhere around the 50-50-ish ballpark, no one would question it. I can't imagine anyone would question your 60-40, either.
I think if you stick somewhere around the 50-50-ish ballpark, no one would question it. I can't imagine anyone would question your 60-40, either.
