Fair Market Value

[Tim Ford]

OK, I'm getting to the point where I have to approach the DNR. For those of you unfamiliar with the state of Maryland, they love their taxes here and cannot rake in enough money to spend on stupid programs and enrichment devices for the politically well-connected. So, in order to get this thing "legal," I have to pay a 5% excise tax on a new boat. That's 500 bux on a boat FMV'ed at 10 grand.

My question is, those of you who have either bought or sold i550s or know someone who has, can you give me a ballpark on that the final selling price went?

It looks like Carbon Offset went for less than 9500. Does anyone know what Jeff got for Alchemy? Etc?

I know: tacky question!

[ryderp]

Here in Ohio you declare the fair market value and you pay taxes on the FMV minus the cost of materials on which you paid Ohio sales taxes. Personally, I think that there is no FMV since every boat is unique and there is no demonstrated market. I valued the boat at a bit over the cost of materials (for the hull only). The state (and the Federal Gvt for that matter) would get their pound of flesh anyway if in the future I sold the boat for more than that valuation, since the difference would be subject to capital gains tax.

[Tim Ford]

Thanks Phil, I hadn't even thought about the possibility that I could deduct some expenses. Sounds like I need to dive deeply into the receipt drawer and compile a list.

I wonder if I can use the price Geoff is putting on a brand new hull, configured for USD instead of CAND.

[Kevin]

If they are anything like the folks in Illinois, they just care that the math is right. FMV * rate = tax. As long as it's of some significant value, they would probably pass it right on through. I paid use tax on parts from outside Illinois to get my boat registered here. I also had have the boat inspected and then the state issued a HIN which I then had to affix to the boat.

Good luck. K.