Boat Purchase and Financing Canada - SailNet Community

   Search Sailnet:

 forums  store  


Quick Menu
Forums           
Articles          
Galleries        
Boat Reviews  
Classifieds     
Search SailNet 
Boat Search (new)

Shop the
SailNet Store
Anchor Locker
Boatbuilding & Repair
Charts
Clothing
Electrical
Electronics
Engine
Hatches and Portlights
Interior And Galley
Maintenance
Marine Electronics
Navigation
Other Items
Plumbing and Pumps
Rigging
Safety
Sailing Hardware
Trailer & Watersports
Clearance Items

Advertise Here






Go Back   SailNet Community > On Board > Boat Review and Purchase Forum
 Not a Member? 


Reply
 
LinkBack Thread Tools
  #1  
Old 10-30-2013
Junior Member
 
Join Date: Jan 2009
Posts: 4
Thanks: 2
Thanked 0 Times in 0 Posts
Rep Power: 0
vksf is on a distinguished road
Boat Purchase and Financing Canada

Hello,

Apologies if this is not the right place to post this, but hopefully it is.

I live in California but am in the process of trying to purchase a sailboat in Canada and had a few questions.

I have been told that by sailing into US water and then back to Canada I will not have to worry about Canadian taxes on the purchase.

My understanding is that when I finally bring the boat into the USA I will not have to pay any import tax because of NAFTA is that correct?

I am also aware of the fact that upon bringing the boat back to California next year I will be responsible for paying use tax. One question I had was whether bringing the boat to Washington State this year with a lower sales tax rate would save me money, or whether I will still be responsible for additional use tax (the difference between the two states sales tax) upon entering California.

Finally I was wondering if anyone has any advice on trying to finance a boat being purchased internationally? I am finding that no one will give boat loans for a boat purchased out of country. How is this normally handled ? Do I need to get a loan in Canada itself? Anyone have any experience with this? The broker unfortunately does not do financing.

Appreciate any and all advice.

Thanks so much.
Reply With Quote Share with Facebook
  #2  
Old 10-30-2013
Faster's Avatar
Just another Moderator
 
Join Date: Sep 2005
Location: New Westminster, BC
Posts: 14,604
Thanks: 67
Thanked 179 Times in 175 Posts
Rep Power: 10
Faster has a spectacular aura about Faster has a spectacular aura about Faster has a spectacular aura about
Re: Boat Purchase and Financing Canada

If the boat is North American built, no duty will apply under NAFTA.. But plenty of boats were built in Europe and the Far East so pay attention! Boats outside NAFTA coming into Canada are subject to 9.5% duty.

Sorry can't be certain about any of the rest of your questions..
__________________
Ron

1984 Fast/Nicholson 345 "FastForward"

".. there is much you could do at sea with common sense.. and very little you could do without it.."
Capt G E Ericson (from "The Cruel Sea" by Nicholas Monsarrat)
Reply With Quote Share with Facebook
The Following User Says Thank You to Faster For This Useful Post:
vksf (10-31-2013)
  #3  
Old 10-30-2013
Junior Member
 
Join Date: Jan 2009
Posts: 4
Thanks: 2
Thanked 0 Times in 0 Posts
Rep Power: 0
vksf is on a distinguished road
Re: Boat Purchase and Financing Canada

Thanks Faster,

This boat is built in Canada so should be good then hopefully.
Reply With Quote Share with Facebook
  #4  
Old 10-31-2013
Senior Member
 
Join Date: Feb 2010
Location: Narragansett Bay
Posts: 8,817
Thanks: 10
Thanked 130 Times in 116 Posts
Rep Power: 6
Minnewaska will become famous soon enough Minnewaska will become famous soon enough
Re: Boat Purchase and Financing Canada

These are good questions for an accountant. You seem to have the concept of use tax, but every single state makes their own rules, which are further complicated by reciprocity they decide between themselves as well. Reciprocity is whether you will get credit for sales/use tax you paid to another state. Further, the rules are usually different for residents and non-residents of the specific state. For example, non-residents can sometimes defer paying sales/use tax if they leave quickly enough. Quickly also being define individually by state. Residents are often subject to these taxes instantly.

Here is a straw man that you should have checked out.

Contract for the boat and pay to have it delivered to the US (presumably Washington State) for closing. This should satisfy the financing company. You will have to document the boat with the USCG (assumes you are US citizen), not just title it in your home state, so that you can return to Canada (not following why returning is important, btw). Leave Washington before their sales/use tax is imposed upon a non-resident. You may have an affidavit that is required to prove you left. When you're ready to bring her to California, pay use tax to CA then. You can research reciprocity between these States, if you're really trying to save a percent or two, but then you'll actually have to stay somewhere long enough to owe it to them. Sounds funny, doesn't it. Most are trying to get out.

This must be one heck of a boat, as there are thousands available for sale in CA. The only final point is that you can rightfully manage these laws, if you are actually doing what you say you are doing. If you say you've left the State or Country, but haven't, or register elsewhere, then bring her to CA to stay off their radar, that's tax evasion. A nasty, sometimes criminal, offense. At the least, the penalties and interest are incredibly harsh and States are in such dire financial condition, they are paying to track rich boat owners down to extract the vig.
__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Jeanneau 54DS

In the harsh marine environment, something is always in need of repair. Margaritas fix everything.
Reply With Quote Share with Facebook
The Following User Says Thank You to Minnewaska For This Useful Post:
vksf (11-03-2013)
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

 
Posting Rules
You may post new threads
You may post replies
You may post attachments
You may edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Canada to US purchase/transfer jfdubu Boat Review and Purchase Forum 4 01-27-2013 03:45 PM
Help/advice on boat loans/boat financing? chrisncate General Discussion (sailing related) 0 08-01-2010 06:26 PM
Purchase financing LakePirate Boat Review and Purchase Forum 5 07-15-2010 08:42 PM
financing a boat marc2don Boat Review and Purchase Forum 20 06-17-2009 09:01 AM
Big Boat Buying/Financing jbarros Boat Review and Purchase Forum 4 08-11-2003 05:27 AM


All times are GMT -4. The time now is 08:56 PM.

Add to My Yahoo!         
Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
SEO by vBSEO 3.6.1
(c) Marine.com LLC 2000-2012

The SailNet.com store is owned and operated by a company independent of the SailNet.com forum. You are now leaving the SailNet forum. Click OK to continue or Cancel to return to the SailNet forum.