08-11-2014, 02:33 PM
Vessel Name: All Night Long
Vessel Model: Regal 2765
Join Date: Sep 2013
Originally Posted by GFC
Here's a lawful dodge to the sales tax in WA....before you buy the boat have the current owner create an LLC and title the boat in the name of the LLC. It will cost him a couple hundred bucks but you can reimburse him for that.
Then, when you make your purchase you are buying the LLC, and the assets owned by the LLC (principally the boat) come with it without being taxed separately.
You would still have to license the boat each year, and that ain't real cheap, but at least you don't pay the sales tax.
Doing the LLC thing is the same as if the LLC owned office furniture, trucks, etc. They pass to the new owners without being taxed separately.
I know this is an old thread but it seems like something people might search for in the future, so I thought I'd update it. This sounded like an interesting idea, but the WA Dept of Revenue website seems to directly contradict this.
When a person buys a business some assets are subject to sales or use tax, while others are not.
Buying a Business or the Assets of a Business
Items subject to retail sales tax
The following items (tangible personal property) are subject to sales tax:
Capital assets such as machinery and equipment, office furniture, and vehicles
Consumable supplies such as office supplies, stationery, forms, canned software and magazines
Generally, the sales tax should be collected by the seller and then paid to the Department. However, if the seller does not collect the sales tax, then the buyer must pay use tax directly to the Department on the tangible personal property acquired in a real estate purchase.
Items not subject to retail sales tax
The following items are not subject to sales tax:
Inventory, if the buyer intends to resell it (the buyer must give a reseller permit to the seller.)
Intangible assets such as good will, stocks and bonds, etc.