Where is the best place to sell a boat and when.

[ocean.jedi]

When I decide to sell my 58 foot catamaran, where should I have the boat located. It's sailing in the Caribbean now, but some say you get your best price for a used boat in Annapolis. Others say Australia, but that was when the Australian dollar was so strong. Where is the market going to give me the best return. Also, if I sell it state side, I assume I can take it offshore to do the title transfer without sales tax. My home state has no sales tax for owner to owner transactions.


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[jeremiason]

Originally Posted by ocean.jedi

Also, if I sell it state side, I assume I can take it offshore to do the title transfer without sales tax. My home state has no sales tax for owner to owner transactions.

You being from Reno means nothing to the new owner as far as Sales Tax.

The sales Tax is based on where the boat was sold in the USA or where it will be Home Ported in the USA. Many states have some tax advantages and some like California suck!

FYI - An Off-Shore Title Transfer gives the new owner the ability to remove the boat from the State without paying sales tax. For instance in many states, if you do an Off Shore Transfer, you are exempt from Sales Tax, but have to remove the boat form the state within a certain amount of time. If you don;t remove the boat, including mechanical problems, you are forced to pay the Sales Tax.

If you keep the boat out of the US for a year, most states will waive the Sales Tax. But some states still require a Sales Tax, if you have never paid it on the vessel and bring it into the US. So always hold on to your tax receipts for the boat.

As far as where to bring the boat to sell it. I wouldn't be so concerned about location as a Good Broker. The Broker will list your boat on Yacht World, which gives the boat world wide exposure. Also the cost of moving the boat to far off places will probably negate any profits.

Of course you should dock the boat in a convenient location, so that people coming to see the boat can fly in easily and maybe even see several boats at once.

Also remember that your boat maybe subject to State Taxes if you don't sell it in the first six months.

I wish you good luck!

[skipmac]

I think Tom covered the issues pretty well. Based on my experience and research on the issues he is correct on all points.

- Sales Tax. Depends state to state. Depends on the state of residence of the buyer and/or where the buyer declares as home port. If the boat comes back to the US it will depend on the state where it will be located and for how long. Some states it will depend on how long the buyer owns it before bringing it to that state.

- Where to get the best price. Not an expert on all the details but I have read a report from the owner of one of my sister ships that took his boat to Australia for sale. He had a lot of details to address to get the boat to comply with local regulations. Same goes for Europe. You also need to consider the cost to move the boat to a distant location, store it there for sale, commuting back and forth, potential tax issues, etc. I would start with the country where the boat is registered, already complies with any regulations and is convenient to access to meet potential buyers. If that's the US I think it would make it easier for more buyers to visit the boat and kick the tires. Also gives buyers a bit of comfort buying in a country where the rules for sale and title transfer are well known.