Just Bought A Plane? STAY OUT OF FLORIDA !

On Mon, 24 Mar 2008 23:58:06 -0500, "Stan Prevost"
wrote:

I ran into this tax scam in Michigan after buying my airplane there.
Actually the broker was there, the seller and buyer were both out of state.
Michigan has a 90-day period, during which we allowed Indiana to have our
money for fuel, hangar, rental car, etc. when we went to Michigan from our
main home in Alabama.

Also, more than 90 days a year in Michigan, you have to register the
airplane. Not a big deal, $30/yr. But registration triggers use tax if you
haven't already paid sales tax.


Annnnndddd.... (drum roll) IF you valid receipt from the seller is
less then what the state of Michigan tax man thinks is fair market
value, they'll base the tax on THEIR book value.

We had one of our local chapter members find a really good buy on a
plane out-of-state. The guy wanted to move it fast (really needed the
money) so it was a great deal.. When he registered and paid the tax he
received an additional bill that valued the plane at roughly twice
what he'd paid for it. When he showed them the receipt they didn't
care. As it wasn't a super expensive plane he wasn't willing to spend
far more fighting it than he'd save if he won.


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