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pavel569
Joined: 21 Dec 2007
Posts: 77
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 Posted: Wed Nov 20, 2013 9:31 am Post subject: Sales taxes |
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Can anyone, who has any experience with sales tax after registering a finish airplane give me an advice when shopping for instruments?
I live in CA but I can buy from company based in Oregon to avoid 9.5% or so sales tax here in CA but I know the airplane will be appraised after registering. Is it worth to do it? If it makes no or only marginal difference I'd be buying few at the time here in CA, if yes I'll wait and buy them all at once next year when my plane is ready from OR.
I'm planning to register the airplane under some special name, not 601XL.
Thanks
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_________________
Pavel
CA
Zodiac 601XL
Stratus Subaru EA-81
Tail, flaps, ailerons, wings, fuselage, canopy done ...
"do not archive" |
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psm(at)att.net
Guest
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| Posted: Wed Nov 20, 2013 10:11 am Post subject: Sales taxes |
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Hi Pavel,
I don't know about the situation in California. They seem to have
unusual ways to tax those "Millionaires and Billionaires" they hate.
In my case, I registered my home built XL and had to pay "Use tax" on
the parts I didn't already pay sales tax on. I made a deal with the
department of revenue to agree on my estimate and pay tax accordingly.
You might want to wait for your expensive avionics until after getting
through the extra tax event of the appraisal. Then you can add out of
state avionics yourself or fly up to Oregon and have them installed.
Pacific Coast Avionics is a good choice of vendor to buy and install
such avionics. It is located just south of Portland, OR. I use them
for some purchases and also transponder certifications. Their service
is great and pricing aggressive.
Paul
Camas, WA
On 11/20/2013 9:32 AM, pavel569 wrote:
| Quote: |
Can anyone, who has any experience with sales tax after registering a finish airplane give me an advice when shopping for instruments?
I live in CA but I can buy from company based in Oregon to avoid 9.5% or so sales tax here in CA but I know the airplane will be appraised after registering. Is it worth to do it? If it makes no or only marginal difference I'd be buying few at the time here in CA, if yes I'll wait and buy them all at once next year when my plane is ready from OR.
I'm planning to register the airplane under some special name, not 601XL.
Thanks
--------
Pavel
CA
Zodiac 601XL
Stratus Subaru EA-81
Tail, flaps, ailerons, wings, fuselage, canopy done ...
"do not archive"
Read this topic online here:
http://forums.matronics.com/viewtopic.php?p=413575#413575
|
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BARRY CHECK 6
Joined: 15 Mar 2011
Posts: 738
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| Posted: Wed Nov 20, 2013 11:42 am Post subject: Sales taxes |
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Pavel:
Awe come on... You live in one of the most highly taxed states in the
union. You must have voted or not! To have the government that is now and
has been in office for a long while. So why not support the government and
state you live in. Everybody should pay higher taxes especially you, YOU
own a plane.
The rich don't pay taxes and neither does the poor... Only us working
middle class.
Now, to answer your question:
You sell the plane as PARTS to a corporation, YOU own the corporation, You
sell it for the value of scrap metal and parts - Say $1,000. The
corporation finishes building the plane at a value of say $3,000. The
corporation then pays the Tax on $3,000. YOU pay the sales tax on "A
Casual Sale" <--- Look it up. Of $1,000 which is usually about half that
of the state tax. And YOU wash your hands of ownership and the problem.
The plane belongs to a Corporation, so if you have an accident, the
corporation can only be sued for the value of the corporation which is ONLY
that of the plane.
Ya got to think BIG. "Only the little people pay taxes" Leona Helmsley
And only in the state of California is sugar known to cause cancer.
Everywhere else it is just fattening. Just like Fried Chicken - Got that
Michelle?
*Barry*
*“Chop’d Liver”*
NJ has taken the next step. They are identifying cars with bad drivers.
You will notice some cars with a large red "R" on them. That is to
identify the drivers as "R"estricted. Restricted is just a polite way of
saying Bad Drivers. Be cautious around them.
On Wed, Nov 20, 2013 at 1:10 PM, Paul Mulwitz <psm(at)att.net> wrote:
[quote]
Hi Pavel,
I don't know about the situation in California. They seem to have unusual
ways to tax those "Millionaires and Billionaires" they hate.
In my case, I registered my home built XL and had to pay "Use tax" on the
parts I didn't already pay sales tax on. I made a deal with the department
of revenue to agree on my estimate and pay tax accordingly.
You might want to wait for your expensive avionics until after getting
through the extra tax event of the appraisal. Then you can add out of
state avionics yourself or fly up to Oregon and have them installed.
Pacific Coast Avionics is a good choice of vendor to buy and install such
avionics. It is located just south of Portland, OR. I use them for some
purchases and also transponder certifications. Their service is great and
pricing aggressive.
Paul
Camas, WA
On 11/20/2013 9:32 AM, pavel569 wrote:
>
>
> Can anyone, who has any experience with sales tax after registering a
> finish airplane give me an advice when shopping for instruments?
> I live in CA but I can buy from company based in Oregon to avoid 9.5% or
> so sales tax here in CA but I know the airplane will be appraised after
> registering. Is it worth to do it? If it makes no or only marginal
> difference I'd be buying few at the time here in CA, if yes I'll wait and
> buy them all at once next year when my plane is ready from OR.
>
> I'm planning to register the airplane under some special name, not 601XL
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Dan Wilde
Joined: 05 Jun 2011
Posts: 34
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| Posted: Wed Nov 20, 2013 10:19 pm Post subject: Sales taxes |
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On 11/20/2013 9:32 AM, pavel569 wrote:
| Quote: |
Can anyone, who has any experience with sales tax after registering a finish airplane give me an advice when shopping for instruments?
I live in CA but I can buy from company based in Oregon to avoid 9.5% or so sales tax here in CA but I know the airplane will be appraised after registering. Is it worth to do it? If it makes no or only marginal difference I'd be buying few at the time here in CA, if yes I'll wait and buy them all at once next year when my plane is ready from OR.
I'm planning to register the airplane under some special name, not 601XL.
Thanks
-
Back in 2007 when I bought my 701 kit, I paid the sales tax when I filed
|
income tax for that year. When I got my firewall forward kit, I also
paid the tax due but for some reason I got a refund of the amount I
submitted. I did not argue since they know best.  No one from the
state (CA) ever contacted me after I finished my plane and completed the
registration.
Your mileage may vary but that is what happened in my case.
Dan
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PatrickW
Joined: 27 Oct 2006
Posts: 380
Location: Fort Worth, Texas
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| Posted: Thu Nov 21, 2013 6:50 am Post subject: Re: Sales taxes |
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All the states are different. For what it's worth, what I did in my state was submit copies of receipts for the major kit components, engine, and prop, and I highlighted the dollar amounts with a yellow highlighter, and I included a check for an amount based on that.
That satisfied the busybodies.
Interestingly, a year later they assessed the value of my 601XL to be within the bracket between $499,999 and $1.2 million, and that's the bracket I'm now taxed in for annual registration fees.
The $0 to $499,999 bracket is only $32 less expensive, so I just pay it. It would cost more to fight it, and IMHO the less interaction you have with government, the better. All I would stand to gain is a measly $32 per year, at the risk of much aggravation or worse.
Enjoy these freedoms while they last. I am sad to say that we may well be the last generation that will be allowed to build an aircraft with our own two hands, and fly it.
- Pat
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rpf(at)wi.rr.com
Guest
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| Posted: Fri Nov 22, 2013 7:38 am Post subject: Sales taxes |
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Hey Pavel,
If you want to pay more taxes no one’s stopping you but get your facts straight and not just say something you’ve heard on TV. “The rich don’t pay taxes and neither does the poor…”
You’re right about the poor, about 48% pay no Federal income tax, but the top 10% of wage earners pay over 70% of all Federal income tax. You may not like it or believe it, but it’s a statistical fact, look it up.
From: owner-zenith-list-server(at)matronics.com [mailto:owner-zenith-list-server(at)matronics.com] On Behalf Of FLYaDIVE
Sent: Wednesday, November 20, 2013 1:34 PM
To: zenith-list(at)matronics.com
Subject: Re: Sales taxes
Pavel:
Awe come on... You live in one of the most highly taxed states in the union. You must have voted or not! To have the government that is now and has been in office for a long while. So why not support the government and state you live in. Everybody should pay higher taxes especially you, YOU own a plane.
The rich don't pay taxes and neither does the poor... Only us working middle class.
Now, to answer your question:
You sell the plane as PARTS to a corporation, YOU own the corporation, You sell it for the value of scrap metal and parts - Say $1,000. The corporation finishes building the plane at a value of say $3,000. The corporation then pays the Tax on $3,000. YOU pay the sales tax on "A Casual Sale" <--- Look it up. Of $1,000 which is usually about half that of the state tax. And YOU wash your hands of ownership and the problem. The plane belongs to a Corporation, so if you have an accident, the corporation can only be sued for the value of the corporation which is ONLY that of the plane.
Ya got to think BIG. "Only the little people pay taxes" Leona Helmsley
And only in the state of California is sugar known to cause cancer. Everywhere else it is just fattening. Just like Fried Chicken - Got that Michelle?
*Barry*
*“Chop’d Liver”*
NJ has taken the next step. They are identifying cars with bad drivers. You will notice some cars with a large red "R" on them. That is to identify the drivers as "R"estricted. Restricted is just a polite way of saying Bad Drivers. Be cautious around them.
On Wed, Nov 20, 2013 at 1:10 PM, Paul Mulwitz <psm(at)att.net (psm(at)att.net)> wrote:
--> Zenith-List message posted by: Paul Mulwitz <psm(at)att.net (psm(at)att.net)>
Hi Pavel,
I don't know about the situation in California. They seem to have unusual ways to tax those "Millionaires and Billionaires" they hate.
In my case, I registered my home built XL and had to pay "Use tax" on the parts I didn't already pay sales tax on. I made a deal with the department of revenue to agree on my estimate and pay tax accordingly.
You might want to wait for your expensive avionics until after getting through the extra tax event of the appraisal. Then you can add out of state avionics yourself or fly up to Oregon and have them installed. Pacific Coast Avionics is a good choice of vendor to buy and install such avionics. It is located just south of Portland, OR. I use them for some purchases and also transponder certifications. Their service is great and pricing aggressive.
Paul
Camas, WA
On 11/20/2013 9:32 AM, pavel569 wrote:
| Quote: |
--> Zenith-List message posted by: "pavel569" <pm569(at)hotmail.com (pm569(at)hotmail.com)>
Can anyone, who has any experience with sales tax after registering a finish airplane give me an advice when shopping for instruments?
I live in CA but I can buy from company based in Oregon to avoid 9.5% or so sales tax here in CA but I know the airplane will be appraised after registering. Is it worth to do it? If it makes no or only marginal difference I'd be buying few at the time here in CA, if yes I'll wait and buy them all at once next year when my plane is ready from OR.
I'm planning to register the airplane under some special name, not 601XL.
Thanks
--------
Pavel
CA
Zodiac 601XL
Stratus Subaru EA-81
Tail, flaps, ailerons, wings, fuselage, canopy done ...
"do not archive"
Read this topic online here:
http://forums.matronics.com/viewtopic.php?p=413575#413575
|
===========
om" target="_blank">www.aeroelectric.com
ooks.com" target="_blank">www.buildersbooks.com
et="_blank">www.homebuilthelp.com
et="_blank">www.mypilotstore.com
"_blank">www.mrrace.com
="_blank">http://www.matronics.com/contribution
le, List Admin.
===========
target="_blank">http://www.matronics.com/Navigator?Zenith-List
===========
http://forums.matronics.com
===========
012345678901234567890
[quote][b]
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http://www.matronics.com/Navigator?Zenith-List |
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steve.freeman(at)syntaxds
Guest
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| Posted: Fri Nov 22, 2013 8:06 am Post subject: Sales taxes |
|
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Hey Guys…
We have politics everywhere these days…Can we keep it off this list?
Steve Freeman
From: owner-zenith-list-server(at)matronics.com [mailto:owner-zenith-list-server(at)matronics.com] On Behalf Of Randy
Sent: Friday, November 22, 2013 8:38 AM
To: zenith-list(at)matronics.com
Subject: RE: Sales taxes
Hey Pavel,
If you want to pay more taxes no one’s stopping you but get your facts straight and not just say something you’ve heard on TV. “The rich don’t pay taxes and neither does the poor…”
You’re right about the poor, about 48% pay no Federal income tax, but the top 10% of wage earners pay over 70% of all Federal income tax. You may not like it or believe it, but it’s a statistical fact, look it up.
From: owner-zenith-list-server(at)matronics.com (owner-zenith-list-server(at)matronics.com) [mailto:owner-zenith-list-server(at)matronics.com (owner-zenith-list-server(at)matronics.com)] On Behalf Of FLYaDIVE
Sent: Wednesday, November 20, 2013 1:34 PM
To: zenith-list(at)matronics.com (zenith-list(at)matronics.com)
Subject: Re: Sales taxes
Pavel:
Awe come on... You live in one of the most highly taxed states in the union. You must have voted or not! To have the government that is now and has been in office for a long while. So why not support the government and state you live in. Everybody should pay higher taxes especially you, YOU own a plane.
The rich don't pay taxes and neither does the poor... Only us working middle class.
Now, to answer your question:
You sell the plane as PARTS to a corporation, YOU own the corporation, You sell it for the value of scrap metal and parts - Say $1,000. The corporation finishes building the plane at a value of say $3,000. The corporation then pays the Tax on $3,000. YOU pay the sales tax on "A Casual Sale" <--- Look it up. Of $1,000 which is usually about half that of the state tax. And YOU wash your hands of ownership and the problem. The plane belongs to a Corporation, so if you have an accident, the corporation can only be sued for the value of the corporation which is ONLY that of the plane.
Ya got to think BIG. "Only the little people pay taxes" Leona Helmsley
And only in the state of California is sugar known to cause cancer. Everywhere else it is just fattening. Just like Fried Chicken - Got that Michelle?
*Barry*
*“Chop’d Liver”*
NJ has taken the next step. They are identifying cars with bad drivers. You will notice some cars with a large red "R" on them. That is to identify the drivers as "R"estricted. Restricted is just a polite way of saying Bad Drivers. Be cautious around them.
On Wed, Nov 20, 2013 at 1:10 PM, Paul Mulwitz <psm(at)att.net (psm(at)att.net)> wrote:
--> Zenith-List message posted by: Paul Mulwitz <psm(at)att.net (psm(at)att.net)>
Hi Pavel,
I don't know about the situation in California. They seem to have unusual ways to tax those "Millionaires and Billionaires" they hate.
In my case, I registered my home built XL and had to pay "Use tax" on the parts I didn't already pay sales tax on. I made a deal with the department of revenue to agree on my estimate and pay tax accordingly.
You might want to wait for your expensive avionics until after getting through the extra tax event of the appraisal. Then you can add out of state avionics yourself or fly up to Oregon and have them installed. Pacific Coast Avionics is a good choice of vendor to buy and install such avionics. It is located just south of Portland, OR. I use them for some purchases and also transponder certifications. Their service is great and pricing aggressive.
Paul
Camas, WA
On 11/20/2013 9:32 AM, pavel569 wrote:
| Quote: |
--> Zenith-List message posted by: "pavel569" <pm569(at)hotmail.com (pm569(at)hotmail.com)>
Can anyone, who has any experience with sales tax after registering a finish airplane give me an advice when shopping for instruments?
I live in CA but I can buy from company based in Oregon to avoid 9.5% or so sales tax here in CA but I know the airplane will be appraised after registering. Is it worth to do it? If it makes no or only marginal difference I'd be buying few at the time here in CA, if yes I'll wait and buy them all at once next year when my plane is ready from OR.
I'm planning to register the airplane under some special name, not 601XL.
Thanks
--------
Pavel
CA
Zodiac 601XL
Stratus Subaru EA-81
Tail, flaps, ailerons, wings, fuselage, canopy done ...
"do not archive"
Read this topic online here:
http://forums.matronics.com/viewtopic.php?p=413575#413575
|
===========
om" target="_blank">www.aeroelectric.com
ooks.com" target="_blank">www.buildersbooks.com
et="_blank">www.homebuilthelp.com
et="_blank">www.mypilotstore.com
"_blank">www.mrrace.com
="_blank">http://www.matronics.com/contribution
le, List Admin.
===========
target="_blank">http://www.matronics.com/Navigator?Zenith-List
===========
http://forums.matronics.com
===========
012345678901234567890123456789012
[quote][b]
| | - The Matronics Zenith-List Email Forum - | | | Use the List Feature Navigator to browse the many List utilities available such as the Email Subscriptions page, Archive Search & Download, 7-Day Browse, Chat, FAQ, Photoshare, and much more:
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raymondj(at)frontiernet.n
Guest
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| Posted: Fri Nov 22, 2013 8:45 am Post subject: Sales taxes |
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I'll second that!
Let's keep all Zenith, all the time. :>)
| Quote: | Raymond Julian
Kettle River, MN.
"And you know that I could have me a million more friends,
and all I'd have to lose is my point of view." - John Prine |
On 11/22/2013 10:06 AM, Steve Freeman (SDS) wrote:
[quote] <![endif]--> <![endif]-->
Hey Guys…
We have politics everywhere these days…Can we keep it off this list?
Steve Freeman
From: owner-zenith-list-server(at)matronics.com (owner-zenith-list-server(at)matronics.com) [mailto:owner-zenith-list-server(at)matronics.com (owner-zenith-list-server(at)matronics.com)] On Behalf Of Randy
Sent: Friday, November 22, 2013 8:38 AM
To: zenith-list(at)matronics.com (zenith-list(at)matronics.com)
Subject: RE: Sales taxes
Hey Pavel,
If you want to pay more taxes no one’s stopping you but get your facts straight and not just say something you’ve heard on TV. “The rich don’t pay taxes and neither does the poor…”
You’re right about the poor, about 48% pay no Federal income tax, but the top 10% of wage earners pay over 70% of all Federal income tax. You may not like it or believe it, but it’s a statistical fact, look it up.
From: owner-zenith-list-server(at)matronics.com (owner-zenith-list-server(at)matronics.com) [mailto:owner-zenith-list-server(at)matronics.com (owner-zenith-list-server(at)matronics.com)] On Behalf Of FLYaDIVE
Sent: Wednesday, November 20, 2013 1:34 PM
To: zenith-list(at)matronics.com (zenith-list(at)matronics.com)
Subject: Re: Sales taxes
Pavel:
Awe come on... You live in one of the most highly taxed states in the union. You must have voted or not! To have the government that is now and has been in office for a long while. So why not support the government and state you live in. Everybody should pay higher taxes especially you, YOU own a plane.
The rich don't pay taxes and neither does the poor... Only us working middle class.
Now, to answer your question:
You sell the plane as PARTS to a corporation, YOU own the corporation, You sell it for the value of scrap metal and parts - Say $1,000. The corporation finishes building the plane at a value of say $3,000. The corporation then pays the Tax on $3,000. YOU pay the sales tax on "A Casual Sale" <--- Look it up. Of $1,000 which is usually about half that of the state tax. And YOU wash your hands of ownership and the problem. The plane belongs to a Corporation, so if you have an accident, the corporation can only be sued for the value of the corporation which is ONLY that of the plane.
Ya got to think BIG. "Only the little people pay taxes" Leona Helmsley
And only in the state of California is sugar known to cause cancer. Everywhere else it is just fattening. Just like Fried Chicken - Got that Michelle?
*Barry*
*“Chop’d Liver”*
NJ has taken the next step. They are identifying cars with bad drivers. You will notice some cars with a large red "R" on them. That is to identify the drivers as "R"estricted. Restricted is just a polite way of saying Bad Drivers. Be cautious around them.
On Wed, Nov 20, 2013 at 1:10 PM, Paul Mulwitz <psm(at)att.net (psm(at)att.net)> wrote:
--> Zenith-List message posted by: Paul Mulwitz <psm(at)att.net (psm(at)att.net)>
Hi Pavel,
I don't know about the situation in California. They seem to have unusual ways to tax those "Millionaires and Billionaires" they hate.
In my case, I registered my home built XL and had to pay "Use tax" on the parts I didn't already pay sales tax on. I made a deal with the department of revenue to agree on my estimate and pay tax accordingly.
You might want to wait for your expensive avionics until after getting through the extra tax event of the appraisal. Then you can add out of state avionics yourself or fly up to Oregon and have them installed. Pacific Coast Avionics is a good choice of vendor to buy and install such avionics. It is located just south of Portland, OR. I use them for some purchases and also transponder certifications. Their service is great and pricing aggressive.
Paul
Camas, WA
On 11/20/2013 9:32 AM, pavel569 wrote:
| Quote: |
--> Zenith-List message posted by: "pavel569" <pm569(at)hotmail.com (pm569(at)hotmail.com)>
Can anyone, who has any experience with sales tax after registering a finish airplane give me an advice when shopping for instruments?
I live in CA but I can buy from company based in Oregon to avoid 9.5% or so sales tax here in CA but I know the airplane will be appraised after registering. Is it worth to do it? If it makes no or only marginal difference I'd be buying few at the time here in CA, if yes I'll wait and buy them all at once next year when my plane is ready from OR.
I'm planning to register the airplane under some special name, not 601XL.
Thanks
--------
Pavel
CA
Zodiac 601XL
Stratus Subaru EA-81
Tail, flaps, ailerons, wings, fuselage, canopy done ...
"do not archive"
Read this topic online here:
http://forums.matronics.com/viewtopic.php?p=413575#413575
|
===========
om" target="_blank">www.aeroelectric.com
ooks.com" target="_blank">www.buildersbooks.com
et="_blank">www.homebuilthelp.com
et="_blank">www.mypilotstore.com
"_blank">www.mrrace.com
="_blank">http://www.matronics.com/contribution
le, List Admin.
===========
target="_blank">http://www.matronics.com/Navigator?Zenith-List
===========
http://forums.matronics.com
===========
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