2 Cool Fishing Forum banner
1 - 12 of 12 Posts

·
Registered
Joined
·
45 Posts
Discussion Starter · #1 ·
I'm in the process of selling my boat, and as soon as it sells, I'm going to purchase another boat. These will both be private party transactions.

When it comes time to pay the sales taxes at the TPWD office, will I pay sales tax on the full value of the new boat or will I only pay taxes on the difference in value between the two boats? I'm just thinking of the trading in a car, and buying a new car, scenario where you only pay the sales tax on the difference.
 

·
archTech
Joined
·
8,718 Posts
The way you describe the transactions as being private party both ways says you pay all the taxes on the value of your new sled. It's been awhile since I've bought and/or sold a boat, but you can look online at the TPWD website and take a closer look at the forms.
 

·
Registered
Joined
·
148 Posts
I'm in the process of selling my boat, and as soon as it sells, I'm going to purchase another boat. These will both be private party transactions.

When it comes time to pay the sales taxes at the TPWD office, will I pay sales tax on the full value of the new boat or will I only pay taxes on the difference in value between the two boats? I'm just thinking of the trading in a car, and buying a new car, scenario where you only pay the sales tax on the difference.
You pay on the sale price you paid. They also have the ability to look up the value and charge the value if they think you are artificially fill out the forms with a low number...for example if you bought a $60k boat and say you paid $10K, they will challenge you on it and charge a market rate.
 

·
Registered
Joined
·
4,632 Posts
Skywagon is semi-correct. You tell them what you paid for it (via bill of sale usually), they will then look up the value in their system (generally 10% less than market) and you'll pay taxes on the higher amount. Same thing happens with cars, motorcycles, trailers, etc.

Long gone are the days of telling them you paid $1k for a $10k car just to reduce your tax burden.
 

·
Registered
Joined
·
1,566 Posts
Skywagon is semi-correct. You tell them what you paid for it (via bill of sale usually), they will then look up the value in their system (generally 10% less than market) and you'll pay taxes on the higher amount. Same thing happens with cars, motorcycles, trailers, etc.

Long gone are the days of telling them you paid $1k for a $10k car just to reduce your tax burden.
That practice is also what’s called a felony, and yes, the state put in a procedure to prevent a windfall to the criminal. It’s always funny to me how people will rationalize lying, cheating, etc. I’m no fan of high taxes, but if you don’t like it get the legislature to change the rules.
 

·
Do you know who I think I am???
Joined
·
5,253 Posts
Skywagon is semi-correct. You tell them what you paid for it (via bill of sale usually), they will then look up the value in their system (generally 10% less than market) and you'll pay taxes on the higher amount. Same thing happens with cars, motorcycles, trailers, etc.

Long gone are the days of telling them you paid $1k for a $10k car just to reduce your tax burden.
Not true, you pay the value listed on the bill of sale... hull, motor, and trailer listed separately. Just went through the whole process. There is no 10% thing like buying a used car.

Now, what really pizzez me off is how the government can get away with double taxation on a product. Complete bs to me. They tax the original sell and tax the resell on the same product over and over, f us all!
 
  • Like
Reactions: okst1

·
Registered
Joined
·
102 Posts
Something you can do to save a little money is have the buyer make a separate bill of sale for electronics and accessories. Some boats like bass boats with 4 graphs, trolling motor, power poles, ect. that can add up to quite a bit.
 

·
Stepped in what?
Joined
·
9,539 Posts
Seems like a market for a "trade in" broker of sorts....given when you trade in a boat on a new one, you only pay the tax on the difference.
 

·
Registered
Joined
·
11 Posts
That practice is also what’s called a felony, and yes, the state put in a procedure to prevent a windfall to the criminal. It’s always funny to me how people will rationalize lying, cheating, etc. I’m no fan of high taxes, but if you don’t like it get the legislature to change the rules.
I don’t personally like to get f***** to tears by the government at any given time. I watch enough of what I work **** hard for get taken off my check every two weeks. If you can save some money on taxes I’m about it when done logically and not egregiously.
 

·
Premium Member
Joined
·
15,892 Posts
That practice is also what’s called a felony, and yes, the state put in a procedure to prevent a windfall to the criminal. It’s always funny to me how people will rationalize lying, cheating, etc. I’m no fan of high taxes, but if you don’t like it get the legislature to change the rules.
So how many times should an item be taxed? Open up a business in Montana and register everything through there.
 

·
Registered
Joined
·
197 Posts
Seems like a market for a "trade in" broker of sorts....given when you trade in a boat on a new one, you only pay the tax on the difference.
I've done this twice. But both times traded in used boat for new boat build/purchase from dealer. Traded in a Beneteau monohull for a Corsair trimaran, then a Seawind cat for a larger Seawind. Two different dealers - one in Florida and one in Texas. Both times boats registered in Texas, and sales tax due in Texas. All completely legal and not questioned by State of Texas. Seawind trade-in was $178k, and saved taxes due at 6.25% rate - so about $11k.

Sent from my SM-T820 using Tapatalk
 
1 - 12 of 12 Posts
Top