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View Full Version : Separate trailer when buying used boat?


zamboniman
11-10-2011, 09:20 PM
Looking to pickup a used X2.

Just occurred to me that I probably should do a separate transaction for the trailer. Basically have 2 bills of sale since they are titled separately and I'll need apppropriate documentation for each when it comes to title transfer.

Not only this it appears that in my state anyway there would be a tax advantage to not lump it together since I need to pay taxes on a watercraft purchase but not a trailer purchase to obtain registration and title.

Anyone have any input?

zamboniman
11-10-2011, 09:25 PM
Also.. going this path.. any input on what the fair market value of a X2 single axle trailer would be? Great condition.

thatsmrmastercraft
11-10-2011, 09:36 PM
Interesting concept separating the two. Never occurred to me.

Millertime
11-11-2011, 12:09 AM
When I bought my X2 from Phoenix and brought it home (Canada). I was required to have two separate bills of sale. One reason being the different taxes for boats and for trailers. Second they looked at it like two purchases. Inspections required for the trailer and not for the boat.

Thrall
11-11-2011, 02:41 AM
Also.. going this path.. any input on what the fair market value of a X2 single axle trailer would be? Great condition.

If I had to pay tax on the boat and not the trailer, that trailer would be as expensive as possible!

thatsmrmastercraft
11-11-2011, 09:06 AM
If I had to pay tax on the boat and not the trailer, that trailer would be as expensive as possible!

Ding! Ding! Ding! Winner winner chicken dinner.

scott023
11-11-2011, 09:08 AM
If I had to pay tax on the boat and not the trailer, that trailer would be as expensive as possible!

That's how the dealer ran our purchase through. My trailer is worth 11K according to the bill of sale.

rgardjr1
11-11-2011, 05:27 PM
If I had to pay tax on the boat and not the trailer, that trailer would be as expensive as possible!

My boat is titled in Idaho and my trailer in Washington. Sales tax In Idaho is 6.5% and Washington is 8.7%, but had to pay sales tax on both.

thatsmrmastercraft
11-11-2011, 05:36 PM
Along those same lines I register my boat in Wisconsin as I use it there more and it wintered there the first two years. No trailer license like in MN and the registration is cheaper.

lukedeuce
11-11-2011, 06:16 PM
I had requested two separate bills of sale when i bought mine. I split the boat and trailer cost 50/50 when i registered.

LouisvilleFan
11-11-2011, 06:45 PM
In KY as long as I bought from a privet party (not a dealer) I did not have to pay any tax! Sweet!!

east tx skier
11-11-2011, 07:32 PM
In Texas, they're titled separately, but the tax on a used boat or trailer is the same at 6.5%.

CiscoStu
11-15-2011, 01:13 PM
The only problem with over-valuing the trailer is that IF you insure the boat, you are de-valuing the boat. When I bought my X-30, we only used 1 bill of sale, but we had both transactions on there - Boat = $38500, Trailer = $1500. That way, both Motor Vehicles and Insurance company were happy.

pram
11-15-2011, 01:59 PM
When I bought my X2 from Phoenix and brought it home (Canada). I was required to have two separate bills of sale. One reason being the different taxes for boats and for trailers. Second they looked at it like two purchases. Inspections required for the trailer and not for the boat.

Just an FYI for the other Canadians importing boats into Canada, you do not have to have 2 separate bills of sale for the boat and trailer.

I don't understand the different tax rates that you are talking about?

not trying to be a d**k, but information needs to be correct if it is going to be out there for all too see

TRBenj
11-15-2011, 06:17 PM
The only problem with over-valuing the trailer is that IF you insure the boat, you are de-valuing the boat. When I bought my X-30, we only used 1 bill of sale, but we had both transactions on there - Boat = $38500, Trailer = $1500. That way, both Motor Vehicles and Insurance company were happy.
That is only true if your insurance company bases your replacement values on what you paid. While most boat insurance companies Ive dealt with ask this question, I usually deflect it and make sure the replacement values listed on the policy are consistent with what I think the boat is worth. No need to put a cap on the pay out value if you got a good deal on it.

Millertime
11-16-2011, 12:47 PM
Just an FYI for the other Canadians importing boats into Canada, you do not have to have 2 separate bills of sale for the boat and trailer.

I don't understand the different tax rates that you are talking about?

not trying to be a d**k, but information needs to be correct if it is going to be out there for all too see

According the Canadian border services agent I spoke with I was to have seperate bills of sale for each, reason being they collect gst on both boat and trailer, as well pst(provincial) on the boat, if you live in a province with pst. Seperate value needed. Then when licensing the trailer you pay pst on that, if applicable.

pram
11-16-2011, 02:01 PM
Hey Miller, I imported a boat 2 days ago (3rd boat now), so I know for a fact that you don't need 2 bill of sales. Unfortunately CSB doesn't have the correct answer when we ask them questions. If the border guard told you that they he/she is incorrect.

When I imported my dirtbike I had done my due diligence on the research of what was to happen and they had no idea about Closed Course Competition and not having to go through the RIV process.

It is true that you have to pay the taxes at different times (always have had too), but when they are filling out the paper work, they assign a value to the trailer that ICBC collects the 7% on when you register it.

I paid the HST (12%) on the value of the boat, and HST (5%) on the trailer. Last night I paid the provincial portion of the HST (7%) on the trailer when I registered it.

If a person lives in Alberta (no provincial so HST is 5%), you pay the full tax at the border.

GT500 MC
11-16-2011, 03:12 PM
You Canadians....tax-tax-tax.:D

Now that I think about it, we're not all that different, are we???

Millertime
11-16-2011, 03:37 PM
Well there it is, my bad. That's all I needed was a little more paperwork when I brought mine over. Thanks for the correction, good to know for next time. Apologies for the miss information.