Off Shore sale (delivery)

[mcvouty]

Here is the situation of our possible purchase;
1. Boat is US Documented
2. Boat is in OZ under a 6 month cruising permit, with us as captain with permission from owner to take boat out of OZ.
3. We want to buy boat as an off shore sale to avoid fees,
approx. $6,000 to $10,000
4. Sale is between owner and us, no broker involved.
5. If needed sale could be postponed until passage to NZ or New Caldonia.

Has anyone had experience with this. We do not mind hiring someone to help do the paper work but do not know where to turn.

Thanks

[Chief Engineer]

I don't think you would have a problem until you got back to US or attempted to Get Us Papers

[Chief Engineer]

Plus, I think that having the boat phsically offshore is not going to matter, as there was intent to perform this deal on shore prior to sailing

[mcvouty]

Thanks for the reply. I guess our worry is if the date of the re-documentation is while the boat is in OZ that someone will see that was a sale and we would be liable for fees and taxes.
McVouty

[hellosailor]

McV, since you haven't said what your citizenship is, or where the boat will be documented, or what your tax liabilities are (use tax versus sales tax versus other taxes) you've really presented no information that is relevant to taxes being tolled on the sale of the boat.

If all of that is Greek to you...it probably means you're about to get yourself in deep kimchee with some tax authorities, who have loing arms and longer memories and are very good at finding and collecting taxes and penalties.

If you don't know what types of taxes are rquired in your venue, or what you tax liabilities are, or how your venue asseses taxes...

Does the phrase "deep kimchee" translate down there?

[mcvouty]

Deep Kimchee is what we are trying to avoid.
Both buyer and seller are US citizens.
The boat will be US documented.
It is my understanding that Australia has a 15% (only 10% if vessel is US built) tax by whatever name it is called.

Thanks for your answer.
mcv

[nonam]

My guess is that the sale legally takes place when the seller,or his agent,gets your money.Can you arrange for this to happen when you are at sea between countries?
I can understand why you might not want to ask oz customs about this directly.Been hearing funny stories about them lately.

[Chief Engineer]

Do the paperwork in the states.

[hellosailor]

If the Australian law governs transactions based on last sailing port, or territorial waters, you might be subject to their tax anyway. You'll need to find out what their taxes are or aren't.

On the US side...it may not matter where the sale takes place. When you bring the boat back to your home state, your home state may demand use tax dating back to the date of the sale--plus penalties and interest for not having paid that in a timely manner. One gent was hiring a lawyer because his home state went after him when he finally brought his boat home--after 20+ years out of state. (20 years of penalties and interest can add up.) He just figured, after that many years, surely it was OK to bring the boat instate. Nope, not in that state.

I wonder if it might help if you held the transaction itself on "US soil", i.e. the lobby of an embassy, a military base, etc. ? At least that way the venue itself wouldn't be "the high seas".

[mcvouty]

Hmmm. I wonder what state thst was. Certainly one to avoid. Probably California.
Thanks for all of the good suggestions.
mcvouty

[imagine2frolic]

California allows 6 months out of state & country, and then the state tax is forgiven. That can be overcome by just documenting the vessel. If it is not documented then Uncle Sam will want his 1.5% when ever the boat is brought back to any part of the USA. This is what I have personally found........i2f