Taxes on boats.

[DonoBBD]

Well fellas when you buy a boat in Ontario or maybe any where in Canada you need to ask that the trailer price be taken off the boat/trailer combo.

When you plate the trailer if the price of the trailer is bundled with the boat you need to pay taxes on the total amount. If on a private sale you have the invoice state that the trailer is $200 and the boat is $9800 you only have to pay tax on the $200 of the trailer.

There is no real way for taxes to be paid on the boat when transferring the ownership. They have to get you on the trailer because it is plated.

Just a heads up and hope it saves people in the long run.

Cheers Don.

 

[BMANN06]

Yup one way to nail the .... Dirty ... stinkin' ... thieving gov't...

 

[2000mgt]

thats what I was trying to explain in the other post...the boat is the boat and the trailer is a trailer make sure they are on the bill of sale individually....if you buy a boat through a dealership you payin sales tax no matter what tho!

 

[RFoster130]

Sounds like a great loophole, Yeah I bought the boat for $10,000 but the trailer was only $100. Here in KY I pay taxes on the boat based off the value and no plate on the trailer.

 

[DonoBBD]

thats what I was trying to explain in the other post...the boat is the boat and the trailer is a trailer make sure they are on the bill of sale individually....if you buy a boat through a dealership you payin sales tax no matter what tho!

Ya bro you got me digging when I was doing the government thing for the ownership. It doesn't state this loop hole at all but my accountant clarified it for me.

Cheers Don.

 

[thor7000]

Actually you are incorrect!! You will receive a letter down the road from the government asking for the taxes to be paid on whatever amount you stated on the bill of sale!! I spoke to a fellow boater that just got the above letter for his boat that he bought 2 years ago!! The only good thing is that there is no actual book value that Revenue Canada follows so you can pretty much put any amount for the sale price.

 

[2000mgt]

I just heard of this starting to happen, no what if you dont own the boat anymore? and what if you dont have the bill of sale anymore? When I uised to change the skis over in person they never documented the sale value, they only checked the HIN on the bill of sale so they wouldnt know what you paid either

 

[BMANN06]

2000mgt,

It's like going into the DMV when buying a used car privately. Give them a number and make up a bill of sale, I remeber when I bought my Yamaha R6 I told them I bought it for $300.00 because it was crashed. Obviously it wasn't but they aren't going to check. As long as there is a reasonable amount of time between the sale date and registration date they won't worry about it.

 

[2000mgt]

i understand that but what im saying is if the tax man if asking for tax money how do they know what you payed and how much to ask for?