Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 03-08-2016, 14:56   #1
Registered User

Join Date: Oct 2013
Location: Kingston, Ontario, Canada
Boat: Columbia, 8.3 and 8.7 (1977)
Posts: 152
Canadian Ownership of US Sailboat

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
__________________

__________________
weephee is offline   Reply With Quote
Old 03-08-2016, 18:45   #2
Registered User

Join Date: Feb 2014
Location: Niagara Falls
Boat: Westsail 32
Posts: 321
Re: Canadian Ownership of US Sailboat

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.
__________________

__________________
Seymore is offline   Reply With Quote
Old 03-08-2016, 19:49   #3
Marine Service Provider
 
boatpoker's Avatar

Join Date: Nov 2008
Location: Toronto, Ontario or Bahamas
Boat: Benford 38 Fantail Cruiser
Posts: 2,457
Re: Canadian Ownership of US Sailboat

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.
__________________
That hysterical laughter you hear as you sail a way in your "new" boat ..... is the seller.
boatpoker is offline   Reply With Quote
Old 03-08-2016, 20:13   #4
Registered User

Join Date: Oct 2014
Boat: Shopping
Posts: 425
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by Seymore View Post
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?
__________________
Cottontop is offline   Reply With Quote
Old 03-08-2016, 20:16   #5
Marine Service Provider
 
boatpoker's Avatar

Join Date: Nov 2008
Location: Toronto, Ontario or Bahamas
Boat: Benford 38 Fantail Cruiser
Posts: 2,457
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by Cottontop View Post
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.
__________________
That hysterical laughter you hear as you sail a way in your "new" boat ..... is the seller.
boatpoker is offline   Reply With Quote
Old 03-08-2016, 20:16   #6
Jd1
Registered User

Join Date: Aug 2011
Location: Victoria, BC
Boat: Catalina 36 MKII
Posts: 1,062
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by Seymore View Post
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.
__________________
Jd1 is offline   Reply With Quote
Old 03-08-2016, 20:18   #7
Marine Service Provider
 
boatpoker's Avatar

Join Date: Nov 2008
Location: Toronto, Ontario or Bahamas
Boat: Benford 38 Fantail Cruiser
Posts: 2,457
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by Jd1 View Post
I don't know if US flagging is even an option.
See post #3
__________________
That hysterical laughter you hear as you sail a way in your "new" boat ..... is the seller.
boatpoker is offline   Reply With Quote
Old 04-08-2016, 04:10   #8
Registered User

Join Date: Oct 2013
Location: Kingston, Ontario, Canada
Boat: Columbia, 8.3 and 8.7 (1977)
Posts: 152
Re: Canadian Ownership of US Sailboat

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.
__________________
weephee is offline   Reply With Quote
Old 04-08-2016, 04:20   #9
Marine Service Provider
 
boatpoker's Avatar

Join Date: Nov 2008
Location: Toronto, Ontario or Bahamas
Boat: Benford 38 Fantail Cruiser
Posts: 2,457
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by weephee View Post
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.
__________________
That hysterical laughter you hear as you sail a way in your "new" boat ..... is the seller.
boatpoker is offline   Reply With Quote
Old 04-08-2016, 05:42   #10
Registered User
 
Pete O Static's Avatar

Join Date: Jan 2016
Location: Canada and Caribbean
Boat: Jeanneau 36 and C&C 29 MkII
Posts: 138
Re: Canadian Ownership of US Sailboat

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
__________________
Pete O Static is offline   Reply With Quote
Old 04-08-2016, 05:51   #11
Senior Cruiser
 
Vasco's Avatar

Cruisers Forum Supporter

Join Date: Apr 2004
Location: Toronto
Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless"
Posts: 7,091
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by Pete O Static View Post
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
__________________
Rick I
Toronto in summer, Bahamas in winter.
http://groups.yahoo.com/group/beneteau393/
Vasco is offline   Reply With Quote
Old 04-08-2016, 07:11   #12
Registered User

Join Date: Oct 2013
Location: Kingston, Ontario, Canada
Boat: Columbia, 8.3 and 8.7 (1977)
Posts: 152
Re: Canadian Ownership of US Sailboat

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 is offline   Reply With Quote
Old 04-08-2016, 07:15   #13
Registered User

Join Date: Oct 2013
Location: Kingston, Ontario, Canada
Boat: Columbia, 8.3 and 8.7 (1977)
Posts: 152
Re: Canadian Ownership of US Sailboat

Are we talking about income tax or property tax when we're subject to state taxes.
__________________
weephee is offline   Reply With Quote
Old 04-08-2016, 07:34   #14
Marine Service Provider
 
boatpoker's Avatar

Join Date: Nov 2008
Location: Toronto, Ontario or Bahamas
Boat: Benford 38 Fantail Cruiser
Posts: 2,457
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by weephee View Post
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.
__________________
That hysterical laughter you hear as you sail a way in your "new" boat ..... is the seller.
boatpoker is offline   Reply With Quote
Old 04-08-2016, 09:38   #15
Registered User
 
LooseGoose's Avatar

Join Date: Feb 2016
Posts: 33
Re: Canadian Ownership of US Sailboat

Quote:
Originally Posted by boatpoker View Post
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.
__________________

__________________
LooseGoose is offline   Reply With Quote
Reply

Tags
ownership, sail, sailboat

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
Buy a Sailboat, Charter a Sailboat, or Fractional Ownership? Dr. Moreau General Sailing Forum 7 04-09-2012 12:07
Chartering Sailboat for Investment/Ownership sunpack Dollars & Cents 2 21-09-2009 10:16
Canadian buying canadian boat in Florida Rastarea Rules of the Road, Regulations & Red Tape 7 08-02-2009 09:15
Buyiing a Canadian-Registered Sailboat from Another Canadian in Guatemala squarehead General Sailing Forum 2 14-01-2008 05:47
Canadian ownership wingover Rules of the Road, Regulations & Red Tape 2 04-09-2007 11:02



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 03:42.


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.