Quote:
Originally Posted by mreid
The buyer bears the tax burden.
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In Ca., and I suspect in other states, it
depends on which tax. Sales tax, yes.
Personal property tax, maybe. Boats in CA are subject to annual personal property taxes. If the boat is sold, the seller is obligated to pay the personal property tax that may be due on the boat if it was sold before the due date on the tax. In the OP's situation, he will not incur income tax but may incur some personal property tax. This is the same tax that is deductible from the fed returns.