Articles - Insights on Legally Avoiding Sales and Use Tax

Articles

 

"An investment in knowledge always pays the best interest." -- Benjamin Franklin

Where should I register my aircraft? image

Where should I register my aircraft?

Many people believe that they can set up an LLC in Delaware or any other location outside California in order to avoid sales or use tax in California. The state where the LLC or corporation is registered has nothing to do with legally avoiding tax in California. In fact, as I have mentioned before many times, don’t leave things to chance.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


The Long Arm of the Board of Equalization image

The Long Arm of the Board of Equalization

The Board assesses use tax on all vessels and aircraft which are used in California regardless of where they are purchased, where they are registered or where the owner resides. This may sound extreme, but remember, we are talking about a tax agency.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


The Dealer License Myth image

The Dealer License Myth

Many times taxpayers call me when they receive a notice from the Board of Equalization (BOE); often they feel that they have been unfairly singled out. Many times they open the conversation with, “I have a dealer’s license. I don’t have to pay tax.”

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Out-of-state Affidavit Does Not Exempt You from Filing image

Signing an Out-of-state Affidavit Does Not Exempt You from Filing a Tax Return for the Purchase

Many people sign affidavits when they purchase aircraft from a California retailer which allows them to make a purchase in a sales tax exempt manner. If you fit into this category, you probably have not been warned that subsequent to an audit of the retailer’s records, the Board of Equalization (Board) will audit your purchase directly with you.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Misunderstanding Will Double Your Tax image

Misunderstanding Will Double Your Tax

If you have been overwhelmed by articles, advertising and friendly advice about the various schemes to legally avoid California Sales and Use Tax, let me set you straight about how to protect yourself.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Misapplying board annotations will result in a tax liability image

Misapplying board annotations will result in a tax liability

A recent case demonstrated how taxpayers can be at a disadvantage when it comes to understanding how to legally avoid sales/use tax. The taxpayer purchased his aircraft outside the State of California and intended to support a claim for exemption based on commercial use in his own business.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Don’t Store Documents on Your Aircraft image

Don’t Store Documents on Your Aircraft

Recently one of my clients told me he could not get his documents to me because they were in his aircraft and he was in a different location.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Definitions image

Definitions

This article contains information that is designed to help a prospective buyer to understand the maze known as California Sales and Use Tax Laws and Regulations. This first section will contain some definitions. It is intended to clear up questions, such as, “who owes the tax? And what is use tax?”

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


The Complete Story image

The Complete Story

In the everyday world of aircraft and yacht ownership, the following story is played out from coast to coast. The whispers in the crowds of prospective owners often are based on the age-old question, “is it really possible to legally avoid sales tax, or am I risking embarrassment if I get caught trying?”

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros


Common Carrier Exemption

One thing appears to be certain as the California Legislature forces the aircraft industry to suffer the loss of two forms of exemption that have been available to purchasers of aircraft for decades. The use of an aircraft as a common carrier will still be a legal from of exemption.

By Tom Alston, CEO & Founder of Aero & Marine Tax Pros

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