Used boat purchase Taxes (California)

mwh153

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Dec 1, 2011
173
34
San Diego
Name
Mike
Boat Name
53' Post "Scope Creep", 24' Boston Whaler Outrage
If you buy a boat already registered or documented in CA, expect to inherit the prior owner's tax bill. If you bring from out of state you have some more flexibility in providing a bill of sale and paying taxes on that value.
 
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Reel 007

I Should Upgrade My Account
Jun 12, 2006
2,008
1,204
Glendora Ca
Name
Leon
Boat Name
28 Wellcraft Coastal "vagabond'
If you buy a boat already registered or documented in CA, expect to inherit the prior owner's tax bill. If you bring from out of state you have some more flexibility in providing a bill of sale and paying taxes on that value.
Let me clean that up a bit for you as I when through this, you will inherit the previous owner's tax assessment.
Years ago I bought a boat in Ventura county,it had twin 360 Chrysler and the engines were on pallets next to the boat, couple months later I received a tax bill from Ventura county based on the prior owner's tax history.
I called the tax assessor's office and explained that the boat was in poor condition and had no engine, they set up an appointment to do an assessment, woman turned up looked the boat over and told me she is going with the original assessment.
I argued that the boat had no engine and she should consider that, her retort was the engines will be repaired and reinstalled and the value of the boat will be as assessed or greater.
You win some you lose some, I lost.
 
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Tunahead

Long Time Tuna Abused Member
  • Aug 11, 2006
    17,866
    10,828
    Costa Mesa
    Name
    Ron
    Boat Name
    several
    Well, it's been the same since I was a
    Yacht Broker in Newport Beach 70's-80's.
    They have data on 1000's of boats, so trying
    to pull the wool on boat value and tax is
    a crap shoot at best. LOL Your call.
     
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    reelbadlarry

    I Should Upgrade My Account
    Jun 25, 2005
    1,223
    1,316
    57
    socal
    Name
    Larry
    Boat Name
    23ft parker, reel bad
    Can you just transfer ownership with no sale? Just one partner who was on title giving it to the other two?
     
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    May 13, 2004
    973
    1,378
    76
    Long Beach and points due west
    Name
    Bob Ballew
    Boat Name
    2520 Parker with twin 200 Yamahas
    ...Also, remember, if you store your rig in a boat storage yard, they are required to provide the location info to the county assessor. That triggers a county tax bill and if you want to challenge it, you file an appeal and they send someone out to look at the boat (as things are torn apart during your annual prep for offshore runs)...appealing dropped my bill to a more reasonable assessment...
    ...The annual personal property tax is one of the biggest rip-offs in history....The only one worse is the annual tax bill for the sand under your boat if you rent a slip...
    ...When the youngsters admire my Parker and aspire to own one, my advise is,
    "Pay xtra to be first in line on someone else's boat and you will save a small fortune"...Me?...I am buying up Joby Aviation stock so I can end up with a battery powered flying car that hopefully, has pontoons...
     
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    Crowman

    Member
    Mar 3, 2017
    588
    679
    22
    Northern California
    Name
    Crowman
    Boat Name
    YES
    The main fraud is being taxed with $$s already taxed. Let’s say I want to buy a 100k boat. I’m self employed in California so I pay state, fed and self employment tax. That adds up to around 40%. So that 100k I have has already cost me 40k. Tack on 8.7k sales tax and 1.1 k property tax and that boat is now 150k out of pocket and I can’t even write off the sales tax. Sounds fraudulent (or should be) to me.

    Robert
    People get what they voted for.
     
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    sbsurfer

    I Should Upgrade My Account
    Feb 19, 2010
    1,752
    1,060
    805
    Name
    Mark
    Boat Name
    29ft Radon - 15ft Hobie Power Skiff
    CA taxes will catch up with you eventually. I bought a 29 Radon that was out in NC, documented vessel. Took CA 2 years to send me a tax bill on the purchase...then the lovely property taxes too every year. I doubt you'd be able to eliminate sales tax...hopefully it can be minimized by working with seller on the sales price on the bill of sale. Not sure what the cutoff for property taxes is but if it used to be under $10k you wouldn't get hit with property taxes.
     
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    jigstrike

    SCUBA Spearing Daddy
    Feb 28, 2004
    1,430
    626
    53
    Sabre Springs
    Name
    Tom McKinney
    Boat Name
    Pacific Option, a 2006 Tiara 3000 Open
    Trouble is the "I don'ts" are a minority, the free cheese and butter people win.
    That butter and cheese is free becasue red states suck at the teat too in the form of agriculture subsidies. Everyone on all sides of aisle has thier hand in your pocket. The only way to remove it is to put in someone else's pocket. But most Americans are brainwashed about taxing the rich and won't do it. The rich aren't going to stop trying to make money just because they have higher taxes. They will never stop trying to enrich themselves. When are people going to wake up and see the top is the enemy. Trump and Biden are both thieves
     
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    jer dog

    Fishing is life
    Jun 22, 2006
    12,128
    12,663
    Garden Grove
    Name
    Gerry
    Boat Name
    One that floats
    That butter and cheese is free becasue red states suck at the teat too in the form of agriculture subsidies. Everyone on all sides of aisle has thier hand in your pocket. The only way to remove it is to put in someone else's pocket. But most Americans are brainwashed about taxing the rich and won't do it. The rich aren't going to stop trying to make money just because they have higher taxes. They will never stop trying to enrich themselves. When are people going to wake up and see the top is the enemy. Trump and Biden are both thieves
    The rich always get richer,
    But our last guy at the top donated his earnings.
     
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    openclass

    Slam
  • May 28, 2009
    1,120
    1,648
    Belvedere
    Name
    Rick
    Boat Name
    Parker 2820
    I just retired, moved out of state and of course took my boat with me. There is no ad valorem tax and registration is $25 here. My very low property tax goes away in two years when I hit the magic age. I took my California state retirement with me. Now who is bending who over? :finger:
     
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    Errin

    Snorkeler
    Jun 22, 2015
    708
    697
    48
    Santa Barbara
    Name
    Errin
    Boat Name
    Cabo 216
    The main fraud is being taxed with $$s already taxed. Let’s say I want to buy a 100k boat. I’m self employed in California so I pay state, fed and self employment tax. That adds up to around 40%. So that 100k I have has already cost me 40k. Tack on 8.7k sales tax and 1.1 k property tax and that boat is now 150k out of pocket and I can’t even write off the sales tax. Sounds fraudulent (or should be) to me.

    Robert
    Register as a commercial fisherman for the year and write it all off
     
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    baaadlybent

    I Should Upgrade My Account
    Sep 5, 2006
    1,231
    598
    Fullerton/Bahia de los Angeles
    Name
    Doug
    Boat Name
    26' Striper "Baaadly Bent", 21' Bayrunner Baja "Vamonos", 15' Gregor "Little Vamonos"
    When I bought my Bayrunner from a friend I did the sale in three steps. I bought the trailer. Separate check. I bought the outboard. Separate check. I bought the hull. Separate check. Sales price reported was for the hull only. Worked for me. Now the assessed value has dropped enough that I don't get taxed on it. I think the lower limit is $3K or $4K. My reasoning is trailers and outboards get changed from time to time. Why include that with assessment of hull.
     
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    May 13, 2004
    973
    1,378
    76
    Long Beach and points due west
    Name
    Bob Ballew
    Boat Name
    2520 Parker with twin 200 Yamahas
    ...Trump changed the tax laws to intermingle stock and real estate profits and losses to benefit the wealthy...gave a tax reduction carrot to the peons to keep them happy.
    ... Last i checked, you can only write off losses up to the total income of that business and not an unrelated business...in an audit on repeated losses, they will claim you have a hobby, not a valid business.
     
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    sdapguy

    Almost A Member
    Sep 25, 2020
    194
    231
    57
    US
    Name
    D P
    Boat Name
    1994 15' Dauntless Whaler
    I just retired, moved out of state and of course took my boat with me. There is no ad valorem tax and registration is $25 here. My very low property tax goes away in two years when I hit the magic age. I took my California state retirement with me. Now who is bending who over? :finger:
    Depending on source for retirement funds, CA will still try to get their taxes!!! They used to go after Federal retirees that moved to others states! CA's claim was that you earned it while in CA and that they were entitled to taxing it in retirement. It was finally knocked down as taxation without representation, as the retiree was no longer a resident, hence no CA representative in voting matters, and the source was from the Federal government and not a corpration within CA. CA still believes the money of rich people is theirs, after a rich person moves from CA and is still trying to tax their income, on a sliding scale, for up to ten years! This is even after the rich pay taxes in other state for their income and maybe no earnings in CA!
    A guy I worked with lived in Yuma. He had to fill out a CA tax earnings because he earned most, if not all, in CA. He also had to do an AZ income tax form, but they at least gave him credit for the taxes he already paid to CA. Not sure CA reciprocated if the earnings and state of residence were reversed.
     
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