Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 01-12-2008, 23:09   #1
Registered User

Join Date: Sep 2008
Location: Dawson Creek, BC
Boat: Any time now!
Posts: 123
British Columbia, Canada Taxes

I have a few tax questions...

I current Live in BC, Canada.

1.
If I were to purchase a boat in BC which I am planning to sail away for better than a decade if everything works out, do I still have to pay taxes (GST/PST) ? Or can I do an offshore deal of some kind for the boat and sail away (I know some states have a 90 day grace period etc). In this case, to sell the boat one day down the road, would there be a problem? Could I sell in the USA/Caribe? Or would not having paid taxes be a problem or stop me from obtaining the documents I need.

2.
My other option is to buy a boat in Florida, Annapolis, etc. There are WAY more boats of the type I am looking for, especially in Florida. There are 3-4 CSY-33s in Florida right now, and countless Westsail 32s, etc. I would have a much bigger selection of any boat I chose.

Lets say I bought the boat in Florida and sailed for a decade. Would re-selling in the USA be a problem? Would coming back to Canada for any reason be a problem? How about selling in BC ?

Thanks for your help everyone!
__________________

__________________
anathema is offline   Reply With Quote
Old 01-12-2008, 23:30   #2
Registered User

Join Date: Nov 2006
Location: Vancouver, Can.
Boat: Woods 40' catamaran
Posts: 277
If you're a Canadian citizen, you will only be able to state register a US boat, not document it. There is another thread about the perils of that in some of the Caribbean islands. Re-selling in the US would not be a problem as it would still be a US boat.

If you bring it back to Canada, you will be liable for duty and GST. If you can prove it was built in Canada or US (actually kinda hard to do with a long gone builder) you won't pay duty due to NAFTA. I sold my Can. flag boat in the US. Had to import it, proved (with a very old magazine article) that was built in Canada. I had to post a small bond with a customs broker in case I lied on the paperwork. It cost my about $300 for a 30' boat in 2001.
__________________

__________________
Evan is offline   Reply With Quote
Old 02-12-2008, 07:34   #3
Marine Service Provider
 
waverider's Avatar

Join Date: Nov 2008
Location: Lunenburg, Nova Scotia
Boat: O'day 30 "Waverider III"
Posts: 205
Images: 12
Send a message via Skype™ to waverider
You can buy a boat in the US and just registar it with the Canadian Government. They do not collect provencial taxes. They do charge GST but again if the boat is older it maybe excempt from GST too.
waverider is offline   Reply With Quote
Old 02-12-2008, 07:43   #4
Senior Cruiser
 
Vasco's Avatar

Cruisers Forum Supporter

Join Date: Apr 2004
Location: Toronto
Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless"
Posts: 7,138
If you buy the boat in the States and not bring it back to Canada you can still register it as a Canadian vessel. Under 12 meters you will not even require a tonnage survey. If you do not bring the boat to Canada you will not be required to pay any duty or Canadian taxes. If the boat was built in the States you'd have no problem selling it there but should be cognizant of the requirements on your US cruising permit for selling a boat in US. See below for Canadian registration details.
Registration of Vessels: Overview - Vessel Registration Office - Marine Safety
__________________
Rick I
Toronto in summer, Bahamas in winter.
http://groups.yahoo.com/group/beneteau393/
Vasco is offline   Reply With Quote
Old 02-12-2008, 08:26   #5
Registered User

Join Date: Sep 2008
Location: Dawson Creek, BC
Boat: Any time now!
Posts: 123
So it sounds like, if I get a boat in Florida/Annapolis etc, then cruise until I am done, then sell again in Florida years later, I would never have to pay taxes of any kind.

I could still register the boat as Canadian and they wouldn't hunt me down for GST etc if it never entered Canadian waters?
__________________
anathema is offline   Reply With Quote
Old 02-12-2008, 08:31   #6
Senior Cruiser
 
Vasco's Avatar

Cruisers Forum Supporter

Join Date: Apr 2004
Location: Toronto
Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless"
Posts: 7,138
Quote:
Originally Posted by anathema View Post
So it sounds like, if I get a boat in Florida/Annapolis etc, then cruise until I am done, then sell again in Florida years later, I would never have to pay taxes of any kind.

I could still register the boat as Canadian and they wouldn't hunt me down for GST etc if it never entered Canadian waters?
Yes, that's the way it goes. Actually you can bring the boat to Canada but only for repairs or other work and cannot use it.
__________________
Rick I
Toronto in summer, Bahamas in winter.
http://groups.yahoo.com/group/beneteau393/
Vasco is offline   Reply With Quote
Old 02-12-2008, 09:56   #7
Registered User

Join Date: Sep 2008
Location: Dawson Creek, BC
Boat: Any time now!
Posts: 123
Hm Perfect that is exactly what I wanted to hear! Not often you get that

I have a feeling I will end up on the lower east coast somewhere looking at as many boats as I can There is a NICE looking CSY-33 in turnkey condition though here in BC which I would like, but in a year or two when I buy, I imagine it will be gone. One never knows though. I don't really want to sail down the PNW coast as a relatively green sailor though, I have heard it can be non-fun.
__________________
anathema is offline   Reply With Quote
Old 02-12-2008, 10:10   #8
Senior Cruiser

Cruisers Forum Supporter

Join Date: Mar 2006
Location: Nevada City. CA
Boat: Sceptre 41
Posts: 3,745
Images: 9
Tax ramifications aside you can spend years in the PNW cruising and never see all there is to be seen. The West Coast doesn't have to be horrible it depends on your timing and luck.
__________________
Fair Winds,

Charlie

Between us there was, as I have already said somewhere, the bond of the sea. Besides holding our hearts together through long periods of separation, it had the effect of making us tolerant of each other's yarns -- and even convictions. Heart of Darkness
Joseph Conrad
Charlie is offline   Reply With Quote
Old 02-12-2008, 15:52   #9
Registered User

Join Date: Sep 2008
Location: Dawson Creek, BC
Boat: Any time now!
Posts: 123
Heh I have driven the PNW coast all the way down to cali and back, and its a very beautiful place.

All I am saying is that I will be a fairly green sailor when I first set sail, and I REALLY don't want to depend on luck to get me through.

If I catch a storm with a Lee shore to my east and don't have the expertise to beat my way away from the shore, me, my wife, and maybe my cat if I take him could all die.

So at least at first, I may take a bit harder look at something on the middle to south Atlantic USA coast for my purchase. Then I can sail in the (relatively) easier sailing of the Caribbean and Mexico's east coast. I have a small cabana on the ocean in Puerto Escondido, Mexico(This one: http://maps.google.ca/maps?hl=en&q=P...z=4&iwloc=addr ). So I may cross the canal and make home base in that area during hurricane season if it is safe. No atlantic hurricanes hit there, or almost never but I am not sure about pacific hurricanes.
__________________
anathema is offline   Reply With Quote
Old 02-12-2008, 16:23   #10
Senior Cruiser

Cruisers Forum Supporter

Join Date: Mar 2006
Location: Nevada City. CA
Boat: Sceptre 41
Posts: 3,745
Images: 9
Quote:
Originally Posted by anathema View Post
Heh I have driven the PNW coast all the way down to cali and back, and its a very beautiful place.

All I am saying is that I will be a fairly green sailor when I first set sail, and I REALLY don't want to depend on luck to get me through.
The real beauty starts noth of Lund BC. there are no costal highways above that from what I understand. If you are looking for a place to learn to sail in relative safety then The area around Vancouver Island Desolation Sound and the like are great training grounds for navigation skills, sailing in both light and heavy air, and self reliance.

When you do your calculations on what is a better value to pay the taxes or to avoid them don't forget that there will be the expense of getting to the boat and back to BC. A couple of trips to Florida will add up. I had my boat in Canada, Washington State and Oregon because I didn't think it was fair for the State of California to collect a tax on a boat that I was only going to keep in California for a year then bring to Mexico. In the end my experience is that it would have been cheaper (or the same) to pay the tax. Instead I had to spend the money I would have on taxes to travel back and forth from CALifornia to BC. I'm glad I did it but keep the travel expenses in mind when making your decision.
__________________
Fair Winds,

Charlie

Between us there was, as I have already said somewhere, the bond of the sea. Besides holding our hearts together through long periods of separation, it had the effect of making us tolerant of each other's yarns -- and even convictions. Heart of Darkness
Joseph Conrad
Charlie is offline   Reply With Quote
Old 02-12-2008, 17:42   #11
Registered User

Join Date: Sep 2008
Location: Dawson Creek, BC
Boat: Any time now!
Posts: 123
Ya thanks charlie it is definitely something to consider. I certainly don't plan on doing a 'few' trips anywhere though. Once I sell my house, I am free. I would fly down to florida and look at a ton of boats. Rent a place for a month or even buy a nice tent and stay in a nice campground. I'm sure there are many. Once I buy the boat, I will move aboard immediately and begin refitting for my needs. Almost every boat on Yachtworld I've found that I like seems to be in Florida.

There are 5 CSY33s on yachtworld, 4 of them in Florida. A few Westsail 32s in florida. Quite a few PSC31s there too.

There are actually a lot of Westsail 32's on the California coast. This would be perfect for me as I could then just sail straight south to Puerto Escondido, coast hopping all the way, then when I feel more ready, cross the canal and head into the Caribe, or head north into the sea or cortez, which I have heard fantastic things about.

So many options!

If I buy a boat in BC, not only might I have to pay taxes, I will have to travel down the PNW coast, which could entail waiting for the right season if I don't time the purchase exactly right. If it costs me another year of living in Canada this is very cost prohibitive.

I have heard good things about desolation sound, and I did plan to sail around the BC coast a bit training before making any semi-blue water trip down the PNW if that is the option I chose.
__________________
anathema is offline   Reply With Quote
Old 02-12-2008, 18:03   #12
Senior Cruiser
 
Vasco's Avatar

Cruisers Forum Supporter

Join Date: Apr 2004
Location: Toronto
Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless"
Posts: 7,138
anathema,

I think you've got the right idea. Too cold in B.C., no palm trees and the water's not the right colour.
__________________
Rick I
Toronto in summer, Bahamas in winter.
http://groups.yahoo.com/group/beneteau393/
Vasco is offline   Reply With Quote
Old 05-12-2008, 17:43   #13
Registered User
 
Amgine's Avatar

Join Date: Dec 2004
Location: Vancouver BC
Posts: 1,384
Images: 1
Hmmph.

I'd suggest learning here, unless you have money to head south *now*. You needn't buy here though. Take classes in the PNW, maybe charter a boat or three next summer (yes, there are lots of charter options here, and just south of the border as well.)

But if you're ready to go, go now. Don't wait until next spring, get south and get on the water. Prices are good now, and they likely will be starting back up next spring (unless this recession is deeper/broader than I hope.)
__________________
Amgine
Blog

On the internet, nobody knows you're a dog anchored in a coral atoll.
Amgine is offline   Reply With Quote
Old 05-12-2008, 18:50   #14
Senior Cruiser
 
jackdale's Avatar

Cruisers Forum Supporter

Join Date: Mar 2008
Location: Calgary, AB, Canada
Posts: 5,048
Images: 1
Quote:
Originally Posted by Charlie View Post
The real beauty starts noth of Lund BC. there are no costal highways above that from what I understand. If you are looking for a place to learn to sail in relative safety then The area around Vancouver Island Desolation Sound and the like are great training grounds for navigation skills, sailing in both light and heavy air, and self reliance.
I whole heartedly agree. The other great things about Desolation Sound:
1) Warmest water north of Panama
2) Great oysters and prawns
3) Great fresh water swimming (Black Lake, Cassel Lake, etc.)
4) Spectacular views, especially from Sarah Point looking up Desolation Sound
5) Great anchorages
6) Fine fresh pastry at Refuge Cove or at Nancy's Bakery in Lund



If you can get into the Broughtons, you will be in one of the few less visited areas.

If you sail can here, you can sail anywhere. Big tides, big currents, lots of rocks.

There are at least three sailing schools in the area. Two in Comox, one in Powell River.

If you want find out how you react to the big ocean, you can also do one of the Around Vancouver Island trips. I do three a year; many of my clients are seeing how the respond to the open ocean.

Jack
__________________
ISPA Yachtmaster Ocean Instructor Evaluator
Sail Canada Advanced Cruising Instructor
IYT Yachtmaster Coastal Instructor
ASA 201, 203,204, 205, 206, 214
As I sail, I praise God, and care not. (Luke Foxe)
jackdale is offline   Reply With Quote
Old 05-12-2008, 19:48   #15
Registered User

Join Date: Sep 2008
Location: Dawson Creek, BC
Boat: Any time now!
Posts: 123
Quote:
Originally Posted by Amgine View Post
I'd suggest learning here, unless you have money to head south *now*. You needn't buy here though. Take classes in the PNW, maybe charter a boat or three next summer (yes, there are lots of charter options here, and just south of the border as well.)

But if you're ready to go, go now. Don't wait until next spring, get south and get on the water. Prices are good now, and they likely will be starting back up next spring (unless this recession is deeper/broader than I hope.)
Well, I will be taking classes shortly, but...

I cant afford to buy a boat or go south at all until my house sells. I have about 150 thousand in equity in it, and plan on using 50-60 of that for the boat.

Once I have the money, I COULD buy in BC, but there are still the problems mentioned before of thrusting a green sailor into the challenging conditions of the PNW on my sail down to Mexico. If I buy in Florida(or similar) I am most of the way there, and my sail is through the calm Caribbean to learn and plus the boats are much cheaper in the states compared to Canada. A CSY-33 -starts- at 50k here compared to 30k in the USA for a similar condition boat. Plus I'd pay no taxes.

Like I said before, cali would be ideal because I end up on the right coast, I can cruise through the sea of Cortez (which I have heard from quite a few places now that it is even a nicer cruise than most anywhere in the Caribe) and I still get the advantage of the cheaper boat and no PNW coast.

I guess it will come down to it more when I am really ready to buy. I Certainly appreciate the advice though, keep it coming!
__________________

__________________
anathema is offline   Reply With Quote
Reply

Tags
british columbia, Canada, columbia, taxes

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hello from British Columbia solmaniac Meets & Greets 3 10-02-2010 16:31
Newbie from British Columbia Canoeguy Meets & Greets 9 06-10-2009 14:28
British Columbia Pics '08 emayd Pacific & South China Sea 7 17-07-2009 04:33
November from British Columbia to California TillThen Pacific & South China Sea 31 23-11-2008 11:34
New boater in Sunny British Columbia paulc19 Meets & Greets 4 05-08-2008 15:46



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 08:09.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.