Re: oh tax man, how do I deal with you

[Del Rawlins]

On 8 Aug 2004 20:01:32 -0700, wrote:

>Ok, so I just finished building a plane from parts (didn't buy a kit)
>and I get it certified and then comes a nifty letter from the Idaho
>State Tax Commission wanting to know how much I paid for the plane so
>they can tax me. How do I convince them that this plane has been in
>progress since 1994 and I don't have any receipts but that a lot of
>the items used to build the plane have already had sales tax paid on
>them?

Be careful. I have heard that some jurisdictions will send you a bill
for back taxes dating back to the start of construction, 1994 in your
case.


================================================== ==
Del Rawlins--
Unofficial Bearhawk FAQ website:
http://www.rawlinsbrothers.org/bhfaq/
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[Roger Halstead]

On 8 Aug 2004 20:01:32 -0700, wrote:

>Ok, so I just finished building a plane from parts (didn't buy a kit)
>and I get it certified and then comes a nifty letter from the Idaho
>State Tax Commission wanting to know how much I paid for the plane so
>they can tax me. How do I convince them that this plane has been in
>progress since 1994 and I don't have any receipts but that a lot of
>the items used to build the plane have already had sales tax paid on
>them?

Get a tax attorney, or at least a registered tax consultant.
It will be worth the money and save you a lot of hassle in the long
run. That and they know the laws of your state.

Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com

>
>I'm worried that if I explain how the aircraft was built that they
>will think I'm trying to pull a fast one or something and then really
>come after me.
>
>When I registered the plane I did register it as being built from
>parts and didn't have to include a bill of sale or anything. I
>suppose I could include that in my explanation letter.
>
>Any other way to go about it? Thanks for your advice.
>
>Harry

[TaxSrv]

"Roger Halstead" wrote:
> Get a tax attorney, or at least a registered tax consultant.
> It will be worth the money and save you a lot of hassle in the long
> run. That and they know the laws of your state.
>

Hey, I'm in the tax business, and I'll take fees for as many hours of
research a client can tolerate. These are real oddball taxes and
99.99% of tax practitioners will be clueless "off the top of the
head." From stories told me in our State, they just want a
reasonable-looking number and then they go away. For many
scratch-built homebuilts, the Dow Jones avg for the day may look good.

Fred F.

[John Ammeter]

On Mon, 9 Aug 2004 11:50:01 -0400, "TaxSrv"
> wrote:

>"Roger Halstead" wrote:
>> Get a tax attorney, or at least a registered tax consultant.
>> It will be worth the money and save you a lot of hassle in the long
>> run. That and they know the laws of your state.
>>
>
>Hey, I'm in the tax business, and I'll take fees for as many hours of
>research a client can tolerate. These are real oddball taxes and
>99.99% of tax practitioners will be clueless "off the top of the
>head." From stories told me in our State, they just want a
>reasonable-looking number and then they go away. For many
>scratch-built homebuilts, the Dow Jones avg for the day may look good.
>
>Fred F.

That was my experience here in Washington State... we
agreed on a figure he was happy with and I could live with.

John

[TaxSrv]

"Jacob Jaks" wrote:

> I had the same thing happen here in Florida. I had to send a letter
to the
> County Tax Collector stating that I had purchased all of the parts
> individually, and that sales taxes were paid at the time of those
purchases.
> He was fine with that. Jake.
>

Just so that statement is true. States can have laws like the feds
regarding unsworn, false statements to enforcement people. What they
used to call a "thousand and one charge" may now be known as the
"Martha Stewart charge." I know a guy who told State in writing that
a $25K aircraft he bought was "$500 salvage value only - damaged
aircraft." They accepted it, but not a good idea. Since state of
purchase was asking, not state of residence, he thought they couldn't
do anything. Not always true, and they could even theoretically take
it to the feds to see if they 'd like a mail fraud case.

Fred F.

[Roger Halstead]

On Mon, 9 Aug 2004 11:50:01 -0400, "TaxSrv" > wrote:

>"Roger Halstead" wrote:
>> Get a tax attorney, or at least a registered tax consultant.
>> It will be worth the money and save you a lot of hassle in the long
>> run. That and they know the laws of your state.
>>
>
>Hey, I'm in the tax business, and I'll take fees for as many hours of
>research a client can tolerate. These are real oddball taxes and
>99.99% of tax practitioners will be clueless "off the top of the
>head." From stories told me in our State, they just want a
>reasonable-looking number and then they go away. For many
>scratch-built homebuilts, the Dow Jones avg for the day may look good.
In my case (State of Michigan) I have to pay sales tax when I register
the plane. This can get really confusing IF you apply for an N#
through the feds now and register the plane in 10 years.

Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com
>
>Fred F.