Previous owner wants property tax credit? - Page 3 - 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 > General Interest > General Discussion (sailing related)
 Not a Member? 


Like Tree19Likes
Reply
 
LinkBack Thread Tools
  #21  
Old 08-14-2013
davidpm's Avatar
Senior Member
 
Join Date: Oct 2007
Location: Madison
Posts: 3,697
Thanks: 166
Thanked 38 Times in 31 Posts
Rep Power: 7
davidpm is on a distinguished road
Re: Previous owner wants property tax credit?

Dear PO

Thanks for contacting me regarding sharing the taxes. I would be happy to pay half the taxes to help you out. I totally understand how in the confusion of the closing something like this could be overlooked. In fact it happened to me too. At the closing I totally forgot to ask for your nice dinghy and new outboard and now I am in desperate need of them as we plan on doing some anchoring out.

Where would you like to meet to exchange my check for your dinghy and outboard.
__________________
The lesson from the Icarus story is not about human failing.
It is a lesson about the limitations of wax as an adhesive.
If you have an engineering problem solve it.
Reply With Quote Share with Facebook
  #22  
Old 08-14-2013
svHyLyte's Avatar
Old as Dirt!
 
Join Date: Nov 2008
Location: Tampa Bay Area
Posts: 2,705
Thanks: 12
Thanked 103 Times in 98 Posts
Rep Power: 6
svHyLyte is on a distinguished road
Re: Previous owner wants property tax credit?

Quote:
Originally Posted by Nias View Post
The taxes are for Jan 1st 2013 through Jan 1st 2014. As Bradhamlet said they ususally send the bill around August so he probably just got the bill and isn't too happy about that.
Ah...Wrong. See my previous post and link concerning California Personal Property Taxes. Taxes are assessed based upon the presumed value as of January 1st and billed to the owner of record as of that date on the last day for the then current fiscal year for the subsequent fiscal year, July 1 through the following June 30th...
__________________
"It is not so much for its beauty that the sea makes a claim upon men's hearts, as for that subtle something, that quality of air, that emanation from the waves, that so wonderfully renews a weary spirit."
Reply With Quote Share with Facebook
  #23  
Old 08-14-2013
Member
 
Join Date: Nov 2009
Location: San Francisco, CA
Posts: 30
Thanks: 1
Thanked 0 Times in 0 Posts
Rep Power: 0
Nias is on a distinguished road
Re: Previous owner wants property tax credit?

Quote:
Originally Posted by cthoops View Post
I wouldn't split it with him. As has already been pointed out, it wasn't brought up when you purchased the boat, and he likely received the benefit of the prior owner having already paid the tax when he bought the boat.

Frankly, I think he has a lot of nerve to even ask.
This is the main reason why I lean towards not paying anything. He likely had the benefit of some months of not paying taxes on the front end, just as I will surely have paid for some months that I won't use when I sell the boat. Seems like that is how the cycle goes. If I pay now, I feel like I'll be getting shorted in the long run.

I wouldn't ask that a buyer pay those taxes especially after the fact and I do think that is in bad taste. I surely wouldn't go back to ask that he pay for all those little things that I missed in the survey/inspection/sea trial.

I appreciate all the responses. Gives me some good perspective, thanks.
Reply With Quote Share with Facebook
  #24  
Old 08-14-2013
Member
 
Join Date: Nov 2009
Location: San Francisco, CA
Posts: 30
Thanks: 1
Thanked 0 Times in 0 Posts
Rep Power: 0
Nias is on a distinguished road
Re: Previous owner wants property tax credit?

Quote:
Originally Posted by svHyLyte View Post
Ah...Wrong. See my previous post and link concerning California Personal Property Taxes. Taxes are assessed based upon the presumed value as of January 1st and billed to the owner of record as of that date on the last day for the then current fiscal year for the subsequent fiscal year, July 1 through the following June 30th...
Yes, seems like you are correct on that. So The period being billed for is July 1st 2013 - June 30th 2014, billed to whoever was the owner on Jan 1st 2013.
Reply With Quote Share with Facebook
  #25  
Old 08-14-2013
Senior Member
 
Join Date: Jan 2001
Posts: 495
Thanks: 0
Thanked 2 Times in 2 Posts
Rep Power: 14
Quickstep192 is on a distinguished road
Re: Previous owner wants property tax credit?

Interesting topic........

I'm not familiar with this particular tax, but I have gleaned a couple of things from this exchange.

If I'm understanding correctly:

The previous owner gets a tax deduction for the for the taxes he paid (the full amount), but you get no deduction for any amount you reimburse, since you are not the person who is on record as having paid the taxes. If you are to reimburse at all, it seems like it should be only half the amount remaining after the previous owner's deduction is subtracted.

BTW, how much money are we talking about here?
Reply With Quote Share with Facebook
  #26  
Old 08-14-2013
GMFL's Avatar
Large Member
 
Join Date: Jun 2010
Location: Newport Beach, CA
Posts: 276
Thanks: 5
Thanked 3 Times in 3 Posts
Rep Power: 5
GMFL is on a distinguished road
Re: Previous owner wants property tax credit?

Quote:
Originally Posted by svHyLyte View Post
Ah...Wrong. See my previous post and link concerning California Personal Property Taxes. Taxes are assessed based upon the presumed value as of January 1st and billed to the owner of record as of that date on the last day for the then current fiscal year for the subsequent fiscal year, July 1 through the following June 30th...
Oops,

Sorry, had to delete that, I was wrong on the post. my bad.

Last edited by GMFL; 08-14-2013 at 11:11 PM.
Reply With Quote Share with Facebook
  #27  
Old 08-14-2013
Senior Member
 
Join Date: Apr 2010
Location: Wayne, PA
Posts: 221
Thanks: 3
Thanked 4 Times in 4 Posts
Rep Power: 5
Dfok is on a distinguished road
Re: Previous owner wants property tax credit?

Deductions, morality and ambiguity have no place in this discussion. This is not a complicated scenario, ownership changed on the date of the sale. The new owner is responsible for taxes from that date forward.
Reply With Quote Share with Facebook
  #28  
Old 08-14-2013
poopdeckpappy's Avatar
Senior Member
 
Join Date: Jul 2006
Location: San Diego
Posts: 5,681
Thanks: 25
Thanked 39 Times in 33 Posts
Rep Power: 10
poopdeckpappy has a spectacular aura about poopdeckpappy has a spectacular aura about
Re: Previous owner wants property tax credit?

Thiis could get touchy, The tax is on the property ( the boat ) I think martime law veiws a boat as a person, so any tax or tax lien will follow the boat, not the previous or even the current owner, but the boat itself.
__________________
1978 Tayana 37

Freedom comes when youíre ready to sail away. True freedom comes when you donít have to return


Cut off from the land that bore us, betrayed by the land we find, where the brightest have gone before us and the dullest remain behind, .......but stand to your glasses, steady,.......tis all we have left to prize, raise a cup to the dead already, hurrah for the next that dies
Reply With Quote Share with Facebook
  #29  
Old 08-15-2013
Senior Member
 
Join Date: Feb 2010
Location: Narragansett Bay
Posts: 8,960
Thanks: 10
Thanked 135 Times in 121 Posts
Rep Power: 6
Minnewaska will become famous soon enough Minnewaska will become famous soon enough
Re: Previous owner wants property tax credit?

The buyer negotiated a price based upon all facts offered by the seller. That price could have been different, if the seller requested reimbursement of pro-rata taxes. Said differently, the price the buyer agreed to could be argued to already include the value of those taxes, as the buyer may have otherwise paid less. You just can't go back and change the facts.

Even more compelling to me is the fact that the buyer will never owe taxes to that county the seller pay them to. Say the buyer was from out of state, would you even agree to a contract where you paid taxes you would never owe or benefit from?
utchuckd likes this.
__________________

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
  #30  
Old 08-15-2013
TakeFive's Avatar
If it's blowin' I'm goin'
 
Join Date: Oct 2009
Location: Swarthmore, PA
Posts: 2,565
Thanks: 5
Thanked 46 Times in 43 Posts
Rep Power: 5
TakeFive will become famous soon enough
Re: Previous owner wants property tax credit?

This guy screwed up and forgot to put this in the contract. So you would appear to be under no obligation to pay.

EXCEPT FOR ONE PROBLEM: If he fails to pay, the taxing jurisdiction will put a LIEN ON YOUR BOAT.

In my state, the taxes are prorated for all real estate transactions. And IIRC it is not covered in the purchase contract, it is covered in the FHA good faith settlement agreement because it is a standard practice that everyone follows. So if this transaction was a house, you'd be on the hook for almost all the tax since the taxing year starts July 1. Under that scenario, his offer of a 50-50 split is still a good deal for you.

So contractually you would not appear to be on the hook (though I'm not a lawyer). But given the crap you'll need to go through having a lien placed on YOUR boat if HE doesn't pay, I'd take him up on the 50-50 split, and personally go with him in person to make sure he pays the bill instead of just pocketing your money. Try to write your check directly to the taxing authority (not to him), and see if there is some way to get them to give you a receipt for your part, so you can take a tax deduction (if one is actually available for your tax situation).

FWIW, this is one of those things that a broker should know to take care of, and how he earns his commission.

Also, don't forget about that thing called karma. It does have a way of coming back to bite you later.
__________________

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

Formerly posted as "RhythmDoctor"
1998 Catalina 250WK Take Five (at Anchorage Marina, Essington, on the Delaware River)
1991 15' Trophy (Lake Wallenpaupack)
1985 14' Phantom (Lake Wallenpaupack)

Last edited by TakeFive; 08-15-2013 at 07:20 AM.
Reply With Quote Share with Facebook
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
I know why the Previous Owner sold the boat! Boasun General Discussion (sailing related) 19 06-19-2012 01:54 AM
$8,000 Tax Credit thesnort Living Aboard 9 05-14-2010 11:07 AM
2GM converted to freshwater by previous owner ... now how do I fix it?! scraph Diesel 1 01-11-2010 03:06 PM
Four Day Charter Credit We Are Not Able To Use! shanbill Chartering 0 11-18-2002 04:26 AM
Confused with Credit ptapaul Boat Review and Purchase Forum 3 07-13-2002 06:37 AM


All times are GMT -4. The time now is 03:58 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.