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#1
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A disturbing omen.
That would not work in Georgia. The HIN is required for USCG
documentation and there are only two ways to get a HIN. Either register the boat as homebuilt and let the state assign a it or get a manufacturer's prefix from the USCG. If I register as a manufacturer with the USCG I will immediately be classified that way and the DOR will say I am converting a product to personal use and make me pay sales tax on the market value of the boat rather than material cost. The agent that writes my homeowner's policy had to go on oxygen when I told him about the boat. :-) Rutu has a full blown buildres risk yacht policy. All I really needed was fire and windstorm coverage but if someone manages to sneek a crane and a lowboy into the backyard and steel the boat I am covered. Also, even though I am 150 miles from any water deep enough to float it, if it sinks, I'm covered. Insurance companies are just not equipped to deal with crazy boatbuilders like me. :-) Jim Woodward wrote: I'm not at all sure you need to do a state registration before you document the vessel with the Feds -- you may have done more current research than I, but I think all you need to do is fill out a CG1261 as the builder. see http://www.uscg.mil/hq/g-m/vdoc/faq.htm#10 Certainly back in the Dark Ages when I was building boats for a very modest living, that was all we did -- no one ever went to the state first. I know the rules have changed some, but I can't imagine say, Washburn Doughty, getting a Maine registration on one of their tugs before they delivered it.... Of course, in Massachusetts, at least, this won't help the sales tax issue -- the mass Department of Revenue follows new documentations and sends out letters. I had a good moment on that subject with regard to Swee****er -- was able to reply (from Papeete) that we had bought the boat in Rhode Island and that she was now in Tahiti and that the Massachusetts use tax probably didn't apply. In either case, sooner would be better, as you can certainly make improvements on your boat without paying sales tax on the labor. Make sure your insurance agent knows, because that may be the moment when she goes from being personal property on your homeowners insurance to being a boat requiring her own policy. Jim Woodward www.mvFintry.com Glenn Ashmore wrote in message news:bv2ib.74207$sp2.30015@lakeread04... Last month I bought one of the company's older fleet cars for #2 daughter. Not exactly a "sweetheart deal" but definitely most favored nation. ;-) Sent the title in for transfer and got a new tag. This week I get a letter from the GA revenuers wanting to know the sales price and asking for their pound of sales tax flesh. Casual sales of cars have never been taxed before so I did some checking. It seems that because the politicians are hungry for money in this budget crunch the D of R has finally linked there computer system to Public Safety and are tracking every title. What has this to do with boatbuilding? DNR will be linked by next year. Most of my material was purchased out of state or on eBay so I am going to get hit bad. I think I will try to register before they get linked. This is just Georgia but most states are hunting for revenue now so check out what your state is doing and plan accordingly if you have a big project and be sure to have your receipts carefully documented before you go to register your boat and get a HIN. -- Glenn Ashmore I'm building a 45' cutter in strip/composite. Watch my progress (or lack there of) at: http://www.rutuonline.com Shameless Commercial Division: http://www.spade-anchor-us.com |
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#2
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A disturbing omen.
Insurance -- Fintry's policy very carefully does not cover her if
stolen by land when she's hauled out. 79'x 21'x 27' (total height), 150 tons, and someone's going to steal her on a trailer? If someone manages to do it, it's my loss. It ain't just you that they don't deal with intelligently. You should have told him Rutu was a tree house with a novel shape (design by Frank Lloyd Wrong)..... HIN -- MFR status. I know people who have built boats as a manufacturer, or bought boats as a dealer, and then promptly put them up for sale -- who knows, it might take years to sell at a fair price, and meanwhile, you have to demo it from time to time. Of course, you're eventually going to end up in a no-tax state, aren't you? (I should add that we'll probably end up paying Massachusetts tax for Fintry). Second possibility is to register with the USCG as a manufacturer. Does your DOR talk to the USCG? If it doesn't talk to its own state boat registry that seems unlikely. Your DOR might never notice any of it. If necessary actually have your business sell the boat to you at cost (only book cost is materials). This would be worth doing an LLC for (assuming your anchor business isn't already a separate entity). You'd want proper sets of books for the LLC, and your money going in as a loan.... In any case, do it now -- then your labor for further improvements is certainly exempt. Jim Woodward www.mvFintry.com Glenn Ashmore wrote in message news:DwBib.74551$sp2.67651@lakeread04... That would not work in Georgia. The HIN is required for USCG documentation and there are only two ways to get a HIN. Either register the boat as homebuilt and let the state assign a it or get a manufacturer's prefix from the USCG. If I register as a manufacturer with the USCG I will immediately be classified that way and the DOR will say I am converting a product to personal use and make me pay sales tax on the market value of the boat rather than material cost. The agent that writes my homeowner's policy had to go on oxygen when I told him about the boat. :-) Rutu has a full blown buildres risk yacht policy. All I really needed was fire and windstorm coverage but if someone manages to sneek a crane and a lowboy into the backyard and steel the boat I am covered. Also, even though I am 150 miles from any water deep enough to float it, if it sinks, I'm covered. Insurance companies are just not equipped to deal with crazy boatbuilders like me. :-) Jim Woodward wrote: I'm not at all sure you need to do a state registration before you document the vessel with the Feds -- you may have done more current research than I, but I think all you need to do is fill out a CG1261 as the builder. see http://www.uscg.mil/hq/g-m/vdoc/faq.htm#10 Certainly back in the Dark Ages when I was building boats for a very modest living, that was all we did -- no one ever went to the state first. I know the rules have changed some, but I can't imagine say, Washburn Doughty, getting a Maine registration on one of their tugs before they delivered it.... Of course, in Massachusetts, at least, this won't help the sales tax issue -- the mass Department of Revenue follows new documentations and sends out letters. I had a good moment on that subject with regard to Swee****er -- was able to reply (from Papeete) that we had bought the boat in Rhode Island and that she was now in Tahiti and that the Massachusetts use tax probably didn't apply. In either case, sooner would be better, as you can certainly make improvements on your boat without paying sales tax on the labor. Make sure your insurance agent knows, because that may be the moment when she goes from being personal property on your homeowners insurance to being a boat requiring her own policy. Jim Woodward www.mvFintry.com Glenn Ashmore wrote in message news:bv2ib.74207$sp2.30015@lakeread04... Last month I bought one of the company's older fleet cars for #2 daughter. Not exactly a "sweetheart deal" but definitely most favored nation. ;-) Sent the title in for transfer and got a new tag. This week I get a letter from the GA revenuers wanting to know the sales price and asking for their pound of sales tax flesh. Casual sales of cars have never been taxed before so I did some checking. It seems that because the politicians are hungry for money in this budget crunch the D of R has finally linked there computer system to Public Safety and are tracking every title. What has this to do with boatbuilding? DNR will be linked by next year. Most of my material was purchased out of state or on eBay so I am going to get hit bad. I think I will try to register before they get linked. This is just Georgia but most states are hunting for revenue now so check out what your state is doing and plan accordingly if you have a big project and be sure to have your receipts carefully documented before you go to register your boat and get a HIN. |
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#3
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A disturbing omen.
You and the "wolf guy" need to get together, move to Massatwo****s, and kick
some A__! "Jim Woodward" wrote in message om... Insurance -- Fintry's policy very carefully does not cover her if stolen by land when she's hauled out. 79'x 21'x 27' (total height), 150 tons, and someone's going to steal her on a trailer? If someone manages to do it, it's my loss. It ain't just you that they don't deal with intelligently. You should have told him Rutu was a tree house with a novel shape (design by Frank Lloyd Wrong)..... .... |
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#4
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A disturbing omen.
"Fred Williams" wrote in message . ..
You and the "wolf guy" need to get together, move to Massatwo****s, and kick some A__! Fred -- Must be my advancing age, but this went completely by me at warp speed -- who is the "wolf guy"? I already live in Milton, MA, so whose A__ needs kicking? Jim Woodward www.mvFintry.com |
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#6
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A disturbing omen.
sour (max camirand) ) wrote:
: The wolf guy was the one who realised he was going to be taxed on : capital gains between cattle value and meat value when he bought two : cows and slaughtered them for eating throughout the year. : Thereafter, he declared two cows a year as killed and eaten by wolves, : which is a write-off... And felony tax fraud. Look, if I want right-wing rants, I'll go to alt.politics or listen to reruns of Rush Limbaugh. Let's try and keep this on boatbuilding directly. The original posting of the thread was about how to minimize exposure to taxation in amateur boat construction. Thanks! |
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#7
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A disturbing omen.
Humm, been a while. But I seem to remember some guy managed to find a
"loophole" in his state's sales tax law by having a couple of his cattle "eaten by wolves" annually. I'd say your tax crazed polititians could use a serious "attitude adjustment." Dearly love your state, BUT I would never, ever live there! Fred "Jim Woodward" wrote in message om... "Fred Williams" wrote in message . .. You and the "wolf guy" need to get together, move to Massatwo****s, and kick some A__! Fred -- Must be my advancing age, but this went completely by me at warp speed -- who is the "wolf guy"? I already live in Milton, MA, so whose A__ needs kicking? Jim Woodward www.mvFintry.com |
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#8
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A disturbing omen.
Au contaire, for a PRICE they will insure the dead against further bodily
injury or a Texan against a hail storm :-) "Glenn Ashmore" wrote in message news  wBib.74551$sp2.67651@lakeread04...That would not work in Georgia. The HIN is required for USCG documentation and there are only two ways to get a HIN. Either register the boat as homebuilt and let the state assign a it or get a manufacturer's prefix from the USCG. If I register as a manufacturer with the USCG I will immediately be classified that way and the DOR will say I am converting a product to personal use and make me pay sales tax on the market value of the boat rather than material cost. The agent that writes my homeowner's policy had to go on oxygen when I told him about the boat. :-) Rutu has a full blown buildres risk yacht policy. All I really needed was fire and windstorm coverage but if someone manages to sneek a crane and a lowboy into the backyard and steel the boat I am covered. Also, even though I am 150 miles from any water deep enough to float it, if it sinks, I'm covered. Insurance companies are just not equipped to deal with crazy boatbuilders like me. :-) .... |
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