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CJ Ownership - Taxes

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capav8r(at)gmail.com
Guest

Posted: Fri Jul 06, 2007 4:03 am Post subject: CJ Ownership - Taxes

I am soon to take ownership of my CJ (looking forward to being an active member of the CJ/Yak community!!).  I am wondering if anybody has their planes registerd in Deleware or as a corporation to aviod the hefty use/personal taxes some states levy?  I'd welcome any guidance and both pro and con comments  You can contact me off list if you desire. 

  

 Thanks,

  

 Craig W

 Soon to be CJ Owner

  [quote][b]

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dsavarese(at)elmore.rr.co
Guest

Posted: Fri Jul 06, 2007 4:27 am Post subject: CJ Ownership - Taxes

Craig,

 Some states, regardless of whether it is  registered to a Delaware corporation or a business in general or to an  individual, levy personal property tax if the aircraft is located in their  state.  The states that do have personal property or Ad Velorum taxes as  they are sometimes called, do not care to whom or where the aircraft is  registered.  They only care that the aircraft is based in their  state.   Since CJ's are not typically listed in the aircraft blue book  for establishing a value to calculate taxes due, it would be in your best  interest to have a Bill of Sale with an "acceptable value" (acceptable value  means acceptable to you.  Read between the lines here) for potential  sales tax and personal property tax purposes which you can present to your local  tax collector.  

  

 Many states, like Florida for example, levy a use  tax at the same rate as their sales tax rate when the aircraft is located  in their state for the first time.  Much like when you move to a new  state, you pay use tax on your automobile when registering your  automobile.  State aviation departments have people who review the FAA's  aircraft registration database on a daily basis, looking for new aircraft  registrations in their state.

  

 I have also seen state aviation departments do  ramp checks and write down N numbers to research the aircraft registration  information.  If they find that the aircraft is actually based in their  state, they send out tax bills.  If you keep your airplane at a private  airfield in a private hangar, then it is a little more difficult for state  aviation departments to find.  Not impossible, but just more  difficult.

  

 Hope this helps.

 Dennis

  

 [quote]   ---

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Zjopa

Joined: 21 Feb 2007
Posts: 23
Location: Pacific Northwest

Posted: Fri Jul 06, 2007 8:27 pm Post subject: Re: CJ Ownership - Taxes

Dennis is right that all states are different...

BUT

If you are in any doubt about the tax laws for YOUR state... PLEASE talk to a tax accountant... We are ALL experts here on this site as you will find 

BUT

I had to jump through MANY hoops when I first imported my Yak...

Important things are... Where did you take delivery of the airplane, and where will it be based... Also (TRUE) what state is your drivers license?

The drivers license gives the state proof that you are resident there.

Luckily I had proof that I had owned the aircraft for a year outside the country.. (while it was being restored)

Otherwise I would have an $8000 tax bill!!!

Beware!

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