Buying First Boat and The Legal Stuff

[John Sader]

So I'm looking at buying my first boat, used. I know that the boat has to be registered within 90 days, and the trailer must be transferred over to my name ASAP. What I want to know, is what I must pay taxes on. I've read in other forums that I should get separate bills of sale for the boat motor and trailer. I've also read that the 13% tax will be paid on the cost of the trailer and the boat. Others have said to split the cost of the package with the most weight on the motor as that item won't be taxed. Is this legit? I'm having a hard time finding any definitive information on the transport canada website. Are there other things I should keep in mind when buying a used boat? Thanks

 

[fisgfreek]

Cash is King . You have to come to agreement with the seller .

 

[tossing iron]

Cash is King . You have to come to agreement with the seller .

Yup.
Cash price agreement.
Receipt for half.

 

[John Sader]

Any idea about the tax side of things? Is it true that I won't pay tax on the motor, so on the bill of sale make most of the cost on the motor?

 

[tossing iron]

It's a package.
Boat motor and trailer.
For xxx dollars.
I don't get why you have to separate things?

 

[T-Ack]

You don't have to separate things . I personally got the seller to write me 2 bill of sales . One for the actual cost of the boat and one for $500 . The one for $500 is what I used to pay tax on. Don't lose the bill of sale and documents to show you paid the tax....I actually received a letter from the government almost 3 years after I bought my boat saying that I did not pay tax on my boat . I ended up mailing them a copy of the BOS and supporting documents to prove I paid the tax .... always trying to get more money out of people .... frig off