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Old 13-01-2017, 11:35   #1
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Private party sale and taxes

I am selling my boat and just realized that I am dumb and know nothing about selling a boat.

I've got a buyer. Private party.

The boat is in Florida, I am in Pittsburgh.

Do I charge the buyer sales tax? Where do I then pay taxes on the income? In PA or in FL?

Is there a way, if I buy another boat quickly, I can avoid paying the taxes?
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Old 13-01-2017, 11:42   #2
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Re: Private party sale and taxes

Florida will collect their sales tax (7.5% here in Monroe County) when you transfer the FL title (assuming boat is titled in FL) Income tax is a question for your accountant...
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Old 13-01-2017, 12:00   #3
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Re: Private party sale and taxes

It's not income, and I believe the buyer is responsible for sales tax when they transfer title and register the boat.
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Old 13-01-2017, 12:02   #4
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Re: Private party sale and taxes

When selling a boat the buyer is responsible for paying sales tax in Fl. If you are selling it for more than you paid for it you might be liable for income tax on the difference between what you paid for it and what you are selling it for. If you are selling the boat for more than you paid for it, plus what you paid for any improvements, you are a rare person indeed. Unfortunately for you, buying a new boat won't help you much as you will owe sales/use tax in most states. There are a few exceptions, but you essentially have to leave the boat in one of those states for 6 months to a year. In some states you will owe the sales/use tax no matter how long you keep it in the no tax state. There are a huge number of threads on boat purchasing and taxes, so use the search feature to go through them.
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Old 14-01-2017, 10:48   #5
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Re: Private party sale and taxes

The buyer will be charged sales tax when they register the boat in whatever state they choose. You have no responsibility to collect anything.
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Old 14-01-2017, 11:03   #6
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Re: Private party sale and taxes

Quote:
Originally Posted by Capt.Alex View Post
The buyer will be charged sales tax when they register the boat in whatever state they choose. You have no responsibility to collect anything.
That may very well be true, but nonetheless, Florida will charge a sales or use tax on a boat sold in Florida by an individual, even if the boat is moved out of state after the sale.

Here's a link: http://floridarevenue.com/Forms_libr...t/gt800005.pdf

Quote:
Sales and Use Tax
All boats sold, delivered, used, or stored in Florida are subject to Florida’s sales and use tax, plus any
applicable discretionary sales surtax, unless exempt. Florida boat dealers and brokers are required to
collect tax from the purchaser at the time of sale or delivery.
When a boat is sold by someone other than a registered boat dealer or a boat is brought into Florida
for use in Florida, Florida use tax is due. The “use” part of Florida’s sales and use tax provides
uniform taxation of items. Florida’s six percent (6%) use tax, plus any applicable discretionary sales
surtax, is due on a boat used or stored in Florida when:
 The boat is purchased from a person who is not a registered boat dealer and the sale
or delivery of the boat occurs in Florida;

 The boat is purchased in another state, territory of the United States, or District of
Columbia and is brought into Florida within six (6) months of the purchase date; or
 The boat is purchased in a foreign country and is brought into Florida at any time.
When the purchaser does not pay Florida sales and use tax to the seller for a boat purchase, any
sales and use tax, plus any applicable discretionary sales surtax, is paid to the county tax collector,
licensed private tag agency, or the Department of Highway Safety and Motor Vehicles when
registering the boat in Florida.
Discretionary Sales Surtax
Most counties impose a local option discretionary sales surtax. The surtax is due when the boat is
delivered by the dealer or broker to a county that imposes a surtax. The surtax is also due when the
boat is purchased from an individual and the boat is used in a county imposing a surtax.
Discretionary sales surtax applies to the first $5,000 of the purchase price. Current discretionary
sales surtax rates for all counties are listed on Form DR-15DSS, Discretionary Sales Surtax
Information, posted on our website at Untitled 1.
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Old 14-01-2017, 15:34   #7
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Re: Private party sale and taxes

In the unlikely event you made a profit on your boat, that is taxable income. You probably not be caught if you 'forget' to declare it. You have no obligation to collect sales or use taxes. That is the buyer's problem when he registers the boat.
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Old 14-01-2017, 20:05   #8
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Re: Private party sale and taxes

Quote:
Originally Posted by Hud3 View Post
That may very well be true, but nonetheless, Florida will charge a sales or use tax on a boat sold in Florida by an individual, even if the boat is moved out of state after ]
That does not apply to the op who is the seller - who is asking if he needs to collect tax from the buyer.

Answer is always No. It is the buyers responsibilty to pay.

Sellers Capital Gains is another story, but that is not the question the op asked.
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Old 17-01-2017, 07:13   #9
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Re: Private party sale and taxes

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Originally Posted by tdoster View Post
That does not apply to the op who is the seller - who is asking if he needs to collect tax from the buyer.

Answer is always No. It is the buyers responsibilty to pay.

Sellers Capital Gains is another story, but that is not the question the op asked.
Yes, that's true.

I was reacting more to the concept that one who buys directly from an owner could escape Florida taxes.
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Old 26-01-2017, 10:16   #10
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Re: Private party sale and taxes

Quote:
Originally Posted by Hud3 View Post
Yes, that's true.

I was reacting more to the concept that one who buys directly from an owner could escape Florida taxes.
Actually, a person buying a boat in Florida avoids paying Florida sales tax by moving it out of Florida waters within either (a) 10 days, or (b) 90 days if buying a 90-day decal ($50), or (c) 180 days if buying a 180-day decal ($500), and not moving the boat back into Florida waters for six months.

That buyer may owe sales & use tax in the state into which the boat is moved, however. Unless that state exempts sales between private parties, as some do.

I just purchased a boat in Florida that I'm moving to Mississippi, which doesn't collect sales tax on boats if not purchased from a "dealer."

In any event, the OP would not collect any sales tax.
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