Ownership Transfer of Calif Boat & Tax Issue.

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rfrye1

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Jun 15, 2004
589
Hunter H376 San Diego
We are considering the transfer of ownership of our boat (USCG Documented) from personally owned to an LLC. We own it with a partner. My question is... Will this trigger a "Taxable Sale"? I am afraid of the Calif Revenue Dept wanting their sales tax of some "market value", even though there is no money involved, just an ownership change. In these days, I know all states are looking for revenue anywhere they can, and Calif can be tough on this.

Anybody been through this?
Thanks. Bob
 
Joe

Joe

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Jun 1, 2004
8,323
Catalina 27 Mission Bay, San Diego
Have you talked to anyone at the state level regarding clarification of the tax implications of the ownership change? How about the agency that records the change... what do they have to say? I'll be interested in the result of your investigation.
 
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Steve Dion

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Dec 2, 1999
15,184
Hunter Vision-36 Rio Vista, CA.
I would NOT think that this would be a taxable transaction. That usually happens when you go the other way (corp to individual).

I would contact the franchice tax board in Ca. and ask them.

Why don't you just leave it in a partnership? The USCG has provisions for this type of arrangement with a "managing partner" and you won't need to file papers with the Secretary of State either.
 
Seattle Scott

Seattle Scott

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May 6, 2004
916
Hunter 37C Seattle
shouldn't be any sales tax if going from a 50/50 partnership to a 50/50 ownership of the LLC.
 
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