Canadian Ownership of US Sailboat

[weephee]

I am a Canadian and live full time in Canada. I'm looking at purchasing a sailboat in the Chesapeake Bay area. I want to leave the boat in the US permanently and come down in the winter to sail it and then fly or drive back to Canada for the summer. Will I be able to register it in my name and is there a problem with me leaving it in the states. Thanks

[Seymore]

You yourself can stay in the US for six months out of every twelve. The boat can stay in the US for twelve months, then it must leave the country for a few weeks to start the clock ticking again.

[boatpoker]

First you must get your terminology straight. A "registered" boat in the US is equivalent to a Licensed boat in Canada. What we in Canada call a "Registered" boat is equivalent to a "USCG Documented" boat.

As a Canadian citizen you cannot own a USCG documented vessel so if the vessel you are interested in IS "documented": it will have to be delisted by USCG.

You may however own a US "registered" (state licensed) vessel with no restrictions whatsoever.

[Cottontop]

Originally Posted by Seymore

You yourself can stay in the US for six months out of every twelve. The boat can stay in the US for twelve months, then it must leave the country for a few weeks to start the clock ticking again.

Wouldn't the boat have to leave only if it is foreign flagged?

Couldn't the boat just be state registered?

[boatpoker]

Originally Posted by Cottontop

Wouldn't the boat have to leave only if it is foreign flagged?

Couldn't the boat just be state registered?

Yes, as stated in post #3.

[Jd1]

Originally Posted by Seymore

You yourself can stay in the US for six months out of every twelve. The boat can stay in the US for twelve months, then it must leave the country for a few weeks to start the clock ticking again.

I think you are talking about the boat being Canadian flagged ?

I don't know if the OP is talking about US flagging or Canadian flagging. For that matter I don't know if US flagging is even an option.

[boatpoker]

Originally Posted by Jd1

I don't know if US flagging is even an option.

See post #3

[weephee]

Thanks for the replies. I did mean licensed rather than registered. Sorry for the slip up. So what I understand is that if I purchase the boat in the US and license it in a state (of my choosing ?) I can leave it in the US indefinitely. If I bring a Canadian Licensed boat into the US for permanent occupancy, then I have to also license it in a particular state. As to post number 2, I cannot stay in the US for 6 months without special permission. See the attached

Canadian snowbirds could face U.S. taxman if they stick around too long - Business: Tax Season - CBC News.
No sure how many Canadians know this.

[boatpoker]

Originally Posted by weephee

If I bring a Canadian Licensed boat into the US for permanent occupancy, then I have to also license it in a particular state.

Beware of taxes. Each state has it's own rules in this regard.

[Pete O Static]

Boatpoker hit the nail on the head in Post 3.

I am a Canadian who owns a US boat which is kept in US waters full time. It cannot be federally documented as I am not an American citizen, so I have it licensed with the New York State DMV. Taxes paid to New York. No issues so long is it resides in New York. Where it becomes a pain is if you decide to spend time in another state. For instance, if you sail down to Florida for any length of time, the state of Florida will want taxes from you. This is one of the many advantages to having a vessel federally documented in the U.S. Also, if you leave the US for say Bermuda or the Caribbean, it is much easier to clear customs with a federally documented vessel which shows clear title vs a state DMV certificate.


The other option you have, which I have done with another boat I own in the Caribbean, is to actually register it federally with Transport Canada. As long as the boat was purchased and remains outside of Canadian territorial waters, taxes never become due. You will however be obligated to apply for US cruising permits annually if you intend to stay in the U.S. This will require a fee to the Americans ( only fair ) and each year the boat will need to leave US waters for 2 weeks ( Bahamas ) to reset the clock. This gives you the ability to sail to multiple states provided you disclose your itinerary to Homeland Security and reap the benefits of a federally flagged vessel.

Hope this helps.

P.S. as far as the taxman goes for individuals. There are two restrictions for Canadians spending time in the US. The first is immigration which deems that you cannot remain in the US for more than 183 consecutive days. The word consecutive is key here. The other restriction is for tax purposes and is a rolling 120 days in the last 12 months. This is one that you must keep track of but the beauty of this one is that the US and Canada have a tax treaty. So if the Americans deem that you have stayed beyond the 120 rolling days and that taxes are due, because there is a treaty, any taxes paid to Canada qualify. And guess what? Canadians pay way more taxes so most often, no taxes are due to the US.

http://www.serbinski.com/taxation-in...taxation.shtml

[Vasco]

Originally Posted by Pete O Static

Boatpoker hit the nail on the head in Post 3.



The other option you have, which I have done with another boat I own in the Caribbean, is to actually register it federally with Transport Canada. As long as the boat was purchased and remains outside of Canadian territorial waters, taxes never become due. You will however be obligated to apply for US cruising permits annually if you intend to stay in the U.S. This will require a fee to the Americans ( only fair ) and each year the boat will need to leave US waters for 2 weeks ( Bahamas ) to reset the clock. This gives you the ability to sail to multiple states provided you disclose your itinerary to Homeland Security and reap the benefits of a federally flagged vessel.

Hope this helps.

There is no fee for the cruising permit. You have to be out at least 15 days to get a new one. If you do not have a customs decal you will be required to pay a clearance fee (under $20) on entry to the US.

https://help.cbp.gov/app/answers/det...UWNQOFdkWG0%3D

[weephee]

What are the state taxes based on ie. the value of the boat? If so, does someone need to appraise the boat for tax purposes.

[weephee]

Are we talking about income tax or property tax when we're subject to state taxes.

[boatpoker]

Originally Posted by weephee

What are the state taxes based on ie. the value of the boat? If so, does someone need to appraise the boat for tax purposes.

Every state is different.

[LooseGoose]

Originally Posted by boatpoker

Every state is different.

This is a link to a resource explaining taxes on boats by individual state:

State Boating Information Home - Government Affairs - BoatUS

Click on a state to read the particulars.