Admirality & Maritime Law Attorney in Coral Gables, Florida
Are there tax implications in buying a yacht?
Are there tax implications in buying a yacht?
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there are numerous potential tax
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implications on buying a yacht here in
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the state of florida for example we have
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a tax cap of eighteen thousand dollars
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for anyone wanting to buy a yacht of any
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size the max you could ever
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be required to pay in sales tax is
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eighteen thousand dollars
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as that as an example if you are someone
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say from another state
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if you’re planning to use florida a lot
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as a staging point to use the vessel say
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in the caribbean
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it might be prudent for you to pay the
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eighteen thousand dollar sales tax for
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the yacht or alternatively if you’re
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someone from somewhere else
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you may choose to not pay the tax at all
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and there’s certain ways that
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the vessel has to be utilized and
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structured for that purpose
Miami, FL admiralty & maritime attorney Michelle Otero Valdés talks about the tax implications in buying a yacht. She notes that there are numerous potential tax implications when purchasing a yacht in Florida. For example, the state has a tax cap of $18,000, meaning that regardless of the yacht’s size, the maximum sales tax one could ever be required to pay is $18,000. For buyers from other states who plan to use Florida frequently as a staging point—such as for trips to the Caribbean—it may be prudent to pay the $18,000 sales tax. Alternatively, some out-of-state buyers may choose not to pay the tax at all, though this requires structuring and using the vessel in specific ways to comply with the law.
