The Loan Deal

[Hampton]

Have you guys heard of getting a break on taxes when the sale is done, even though your older boat was not traded in directly?

Is it legal? Is it moral? Is it safe?

 

[osd9]

would need a little more detail on exactly what your situation is...however...moral and taxes in the same sentence...... :smt043

 

[Hampton]

Ha! Good point. I'm going to be a two boat owner until I sell my current boat. Boats available for trade were running at least 10,000 more than my deal on brokerage, and that's after getting serious and arriving at final numbers.

So, for $10,000 and getting the right boat, I'm going to buy my next boat while trying to sell my old boat. I've talked to a couple of brokers and they have a "legal" method to show my boat as a trade for tax purposes. When I sell my boat, we finish the tax paperwork at the brokerage. In the meantime, I've only paid taxes on the difference in values.

 

[MLauman]

I've talked to a couple of brokers and they have a "legal" method to show my boat as a trade for tax purposes. When I sell my boat, we finish the tax paperwork at the brokerage. In the meantime, I've only paid taxes on the difference in values.

I'm no lawyer or tax advisor, but I suspect that's a stretch beyond legal. You might get away with it, but that's another story. I guess my question would be "who's committing the fraud - you or the broker (or both)?".

Good luck! :thumbsup:

 

[Hampton]

M,

Make me legal. Your boat looks just a little too big. I'm selling my '97 250 - Same colors....

:smt038

Thanks. I'm sure they know what they're doing?

 

[fwebster]

In Florida, both transactions have to be shown on the same bill of sale, so if you are doing this legally, you will be signing the title of the 25 over to the broker or the seller. Then when the boat sells, your buyer will be dealing with the broker or your seller. Doing this any other way is fraud. Furthermore, the Florida revenue agents audit every boat deal to be sure all applicable taxes were paid. I see them go by the marina once a month checking each boat.

The other problem I see is the risk of giving the title to a broker in a distant location then you selling the boat to a local buyer. If I was a buyer and the seller told me that he was the owner but the deal had to go thru an out of town broker, I'd think the deal was hinky.

This one is going to boil down to your tolerance for risk and to a broker promising about anything to make a sale and collect a commission.

By the way, I don't think there is a high speed internet connection for prisoners at Bonifay....but I'm not sure about Raiford.

 

[Hampton]

By the way, I don't think there is a high speed internet connection for prisoners at Bonifay....but I'm not sure about Raiford.

Thanks again Frank. You guys are brutal today. A guy comes here to learn what's right and wrong and is sentenced to prison for trying to figure it out.

 

[osd9]

Just wait to see what happens if you ask about politics......you do have an advanced directive......right....

 

[fwebster]

Nobody sentenced you to prison, John, but you have to admit that asking if something is legal and safe in the same question gives those of us from the Perry Mason school of logic a clue as to your direction...................!

If the "safe" question has to do with financial risk, then it is another one where your tolerance for risk will govern. Getting any 3rd party involved in your deal is going to carry some risk with it and it won't be as safe as if you just kept title to the 250DA and sold her locally.

 

[Dave S]

I really don't like "schemes" and what your broker is suggesting sounds like a scheme to me. I certainly wouldn't do it. You will still be money ahead anyway regardless of whether you pay more in taxes by not trading your boat.

I was faced with a similar situation regarding South Carolina personal property taxes and the facts are that come January 1 2007, I will incur another years worth of personal property tax on my old boat even if I sell it on January 2nd!. But my logic was the same as yours. I couldn't get enough on a trade to make it worthwhile so even if I have to pay another years worth of PP taxes, I will be money ahead by selling the boat on my own. So come next December, I have the honor of paying it on two boats............I project my total tax bill to be close to $3000. The 240SD was $608 this year by itself. :smt013

South Carolina has one of the highest PP tax rates in the nation by the way and if there was any "legal" way I could avoid another years taxes on my 240SD I would take it. I would think you are stuck with your tax bill and I certainly woudn't recommend doing anything illegal just to save a few bucks.

 

[Hampton]

Sure, it sounded fishy. That's why I asked. I've thought other things sounded fishy when they were perfectly legit.

I, once again, thank each of you for your input. I will not be involving myself in any tax breaks. Now, can I get a "Get out of jail free" card? Oh, and how about that election (Just Kidding!).

 

[MLauman]

Just wait to see what happens if you ask about politics.....

NOT TRUE!

( unless, of course you're a pansy-arse, bleeding-heart, manatee-hugging, panty-wearing liberal :wink: )

 

[Hampton]

And if you are, and you're reading this forum, you must be a Rock Star!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[chazaroo]

In a deal like this, I think the bottom line is the IRS will get both boats.

 

[ByOwnerBroker]

It is perfectly safe, moral, legal and legit. We do it all the time in MD. I'm not sure what the motivations are for other states that have enacted this law, but here in MD they did it to help grow the boating economy as it will encourage buyers and sellers to use brokers. Technically both boats should be sold in the same transaction, but often the state will allow us to sell the buyer's prior boat a month or two later as long as a small fine is paid. The small fine is significantly less than the tax savings.

 

[Hampton]

Wow,

So many decisions!

I NEED HELP!!!!!!! We have signed a contract pending inspection, survey, and sea trial. My broker insists upon having 10% deposited before I travel down for the inpections. Is this a red flag or is this standard? I asked what the big deal was. Why couldn't I hand him a check? He said it had to be deposited and cleared prior to trial. Is this ok?

 

[thunderbird1]

If the deposit is refundable, then it seems reasonable. If it were me, I would pay the deposit by credit card. If something were to go terribly wrong, it may be easier to dispute the charge with your credit card company than getting cash back from the seller/broker.

Do you have reason to believe there is something not quite right? If you're concerned about the broker, check with the Better Business Bureau or pay to have a Dun and Bradstreet financial report prepared for you.

http://www.bbb.org/
http://www.dnb.com/us/

 

[thunderbird1]

Just wait to see what happens if you ask about politics.....

NOT TRUE!

( unless, of course you're a pansy-arse, bleeding-heart, manatee-hugging, panty-wearing liberal :wink: )

Politics? There is no way I'm going to allow myself to get pulled into this, though I do take offense at the panty-wearing part :grin: . Oh, and don't knock hugging those cute little manatee's until you've tried it :wink: .

 

[Hampton]

I did the better business bureau thing - no records. I checked for longevity - They're listed in the actual phone book with the same phone number and address.

Anyone know them? C & S Marine, Ft Lauderdale? Please, don't scare the crap out of me.

(He asks, ducking deeply to avoid being hit by flying tomatoes.)

 

[osd9]

I've heard of C & S and I have had contact with them in the past with regard to used Sea Rays. They have been around for years. I have no other first hand experience. I have also seen them advertise in the back of all the big magazines.

good luck,