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Old 10-04-2012, 13:46   #1
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Can Canadian Leave Boat in US?

Hi,
I'm interested in buying a boat in New York but am a Canadian citizen. Does anyone know if I do buy it if I'm allowed to keep it in New York? Do I only pay New York taxes if I do or am I dinged for Canadian tax as well?
Also, if I move it from New York to another area of the US do I pay New York or the other states tax?
Many thanks in advance!
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Old 10-04-2012, 14:02   #2
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Re: Can Canadian Leave Boat in US?

Hi Nu. My understanding is that Canadian taxes are due once you import the boat. If you never bring the boat back to Canada, then no taxes need be paid. I don't know about NY taxes, but my best guess is that state taxes may come due if you keep it there past a certain length of time.

We purchased our current boat in Wisconsin. We paid no state taxes b/c we were moving it back to Canada within a short time (two weeks). My understanding is that we would have been hit with state taxes if we had decided to keep the boat in Wisconsin. When we hit the Canadian border we were on the hook for HST (13%).

NOTE: If the boat had been built outside of North America we would also have owed an additional 9.5% for import duties.
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Old 10-04-2012, 14:20   #3
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Re: Can Canadian Leave Boat in US?

It is a common occurring in Point Roberts for Canadians owning boats there. If you never take it back to Canada and get a US permit it can be left there indefinitely. You can't live aboard there for more than 6 months. The majority of the boats at the Point Roberts Marina used to be from Vancouver or Richmond. Once landed in Canada you have to pay the GST. It has to be Canadian Registered though.
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Old 10-04-2012, 15:36   #4
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Re: Can Canadian Leave Boat in US?

As to New York state, if you bring a boat into NY you have 90 days before the state sales or use tax comes due, or you can get an exemption if you bought the boat out of state and you were a non-resident of NY at the time of purchase. If you purchase the boat within NY, you owe the sales tax at the time of purchase. Many Canadian boaters keep their boats in NY or Vermont on Lake Champlain. No Canadian tax is due until you bring the boat into Canada. Sales and use tax in the USA is based on where your boat is stored, not on where you live.
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Old 10-04-2012, 16:29   #5
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Re: Can Canadian Leave Boat in US?

I have a further question to this issue. If you purchase a US Documented boat, naturally you have to change ownership. To document a boat in the USA, you have to be US Citizen or at least a resident. (as far as I know) Of course, you can release the boat from US documentation and register it in Canada without problem, even if the boat will not come through the Canadian border. But then, you have a Canadian registered boat in US waters. I am not sure how long you can stay there, but certainly not unlimited. Anyone's comment is much appreciated
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Old 10-04-2012, 16:42   #6
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Re: Can Canadian Leave Boat in US?

Quote:
Originally Posted by BMiklos View Post
... Of course, you can release the boat from US documentation and register it in Canada without problem, even if the boat will not come through the Canadian border...
Or register the boat in the US State, in which it resides.
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Old 10-04-2012, 16:43   #7
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Re: Can Canadian Leave Boat in US?

I am not certain what the advantage would be to having Canadian documentation on your boat as you would be limited as to how long you could keep it here before duty, etc. came due, and you would need a cruising permit to move about. I am not certain, but I do not believe a Canadian would need a cruising permit if the boat were state registered somewhere in the USA. Obviously, immigration rules would still apply to you.
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Old 11-04-2012, 09:33   #8
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Re: Can Canadian Leave Boat in US?

Thanks everyone for the great information. I will definitely keep researching to find out more information on taxes, etc. The broker mentioned that I could only register it in the US if I was a citizen otherwise I had to register it in Canada but not necessarily move it to Canadian waters. Many thanks!
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Old 11-04-2012, 09:37   #9
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Re: Can Canadian Leave Boat in US?

Many thanks to everyone who contributed to this thread. I will definitely keep researching. The broker did mention that I was unable to register it in the US unless I was a citizen. I would have to register it in Canada but it didn't necessarily have to cross into Canadian waters right away. I believe most states allow 90 days from closing to move it out of state without paying taxes.
Further question...If I did move it out of NYC to Maryland, for example, within the 90 days (assuming this will avoid NYC tax) I would imagine that since I remained in the US, even with a cruising permit, I would have to pay the state tax in where I purchased it. Anyone??
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