AirTalk.org Aviation discussions newsgroups   Archives   FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  Getting plane.          AirTalk.org Forum Index -> Owning Airplanes View previous topic :: View next topic   Author Message Derek. Guest Posted: Wed Dec 01, 2004 1:43 pm    Post subject: Getting plane. Hi all, I'm trying to get plane with my friend under LLC(non-profit reason) in NJ. Any laws,tax, etc.... Please let me know. Derek. Back to top zatatime Guest Posted: Wed Dec 01, 2004 7:11 pm    Post subject: Re: Getting plane. On 1 Dec 2004 05:43:07 -0800, [email]rkossow (AT) optonline (DOT) net[/email] (Derek.) wrote: Quote: Hi all, I'm trying to get plane with my friend under LLC(non-profit reason) in NJ. Any laws,tax, etc.... Please let me know. Derek. If you buy from an individual out of state to an individual you don't have to pay the sales/use tax. HTH. z Back to top Jon Kraus Guest Posted: Mon Dec 06, 2004 12:03 pm    Post subject: Re: Getting plane. I don't know about NJ but we just went through this in Indiana. Basically it boiled down to this: It doesn't matter if you are a LLC or not (we are), doesn't matter if you purchased the plane in state or not. If you are keeping it in Indiana you owe the tax and they collect it when you apply for a registration. I was told that since the states are all broke now they are cracking down on the "not paying sales tax" thing. They (Indiana Dept of Revenue) go out on a quarterly basis and collect N numbers from all the airports and see how long they have been there and whether or not they are registered in state. Good luck. We tried and tried butn couldn't get around it. Jon Kraus PP-ASEL-IA N4443H @ TYQ '79 Mooney M20J zatatime wrote: Quote: On 1 Dec 2004 05:43:07 -0800, [email]rkossow (AT) optonline (DOT) net[/email] (Derek.) wrote: Hi all, I'm trying to get plane with my friend under LLC(non-profit reason) in NJ. Any laws,tax, etc.... Please let me know. Derek. If you buy from an individual out of state to an individual you don't have to pay the sales/use tax. HTH. z Back to top Peter R. Guest Posted: Mon Dec 06, 2004 12:34 pm    Post subject: Re: Getting plane. Jon Kraus (jkraus (AT) indy (DOT) rr.com) wrote: Quote: It doesn't matter if you are a LLC or not (we are), doesn't matter if you purchased the plane in state or not. If you are keeping it in Indiana you owe the tax and they collect it when you apply for a registration. I was told that since the states are all broke now they are cracking down on the "not paying sales tax" thing. They (Indiana Dept of Revenue) go out on a quarterly basis and collect N numbers from all the airports and see how long they have been there and whether or not they are registered in state. Good luck. We tried and tried butn couldn't get around it. What if the aircraft were used for business purposes (say a leaseback)? Would Indiana allow you to collect sales tax as a use tax, I.e. every hour the aircraft is used, rather than one lump sum due at registration? -- Peter Back to top Ron Natalie Guest Posted: Mon Dec 06, 2004 1:15 pm    Post subject: Re: Getting plane. Peter R. wrote: Quote: What if the aircraft were used for business purposes (say a leaseback)? Would Indiana allow you to collect sales tax as a use tax, I.e. every hour the aircraft is used, rather than one lump sum due at registration? Don't know about Indiana, but here you pay sales/use tax on business items. The only thing you can get a free ride on is stuff for resale (because they know they'll get get the tax from the eventual consumer). Back to top Peter R. Guest Posted: Mon Dec 06, 2004 4:39 pm    Post subject: Re: Getting plane. Ron Natalie (ron (AT) sensor (DOT) com) wrote: Quote: What if the aircraft were used for business purposes (say a leaseback)? Would Indiana allow you to collect sales tax as a use tax, I.e. every hour the aircraft is used, rather than one lump sum due at registration? Don't know about Indiana, but here you pay sales/use tax on business items. The only thing you can get a free ride on is stuff for resale (because they know they'll get get the tax from the eventual consumer). In NY if you are in the business of selling hourly aircraft time, you can collect sales tax by each hour of use, rather than pay the entire percentage up front. Could you sell aircraft hourly time to yourself, if there are two businesses involved (one that owned the aircraft and one that bought the hourly aircraft time to travel for business)? I believe there are individuals in nearby hangars who do this. -- Peter Back to top Jon Kraus Guest Posted: Tue Dec 07, 2004 5:25 pm    Post subject: Re: Getting plane. Our plane is going to be used for business purposes sometimes. Other times for pleasure. Indiana doesn't care. They want the sales tax. Jon Kraus Peter R. wrote: Quote: Jon Kraus (jkraus (AT) indy (DOT) rr.com) wrote: It doesn't matter if you are a LLC or not (we are), doesn't matter if you purchased the plane in state or not. If you are keeping it in Indiana you owe the tax and they collect it when you apply for a registration. I was told that since the states are all broke now they are cracking down on the "not paying sales tax" thing. They (Indiana Dept of Revenue) go out on a quarterly basis and collect N numbers from all the airports and see how long they have been there and whether or not they are registered in state. Good luck. We tried and tried butn couldn't get around it. What if the aircraft were used for business purposes (say a leaseback)? Would Indiana allow you to collect sales tax as a use tax, I.e. every hour the aircraft is used, rather than one lump sum due at registration? Back to top Jon Kraus Guest Posted: Tue Dec 07, 2004 5:30 pm    Post subject: Re: Getting plane. Same thing in Indiana. Ron Natalie wrote: Quote: Peter R. wrote: What if the aircraft were used for business purposes (say a leaseback)? Would Indiana allow you to collect sales tax as a use tax, I.e. every hour the aircraft is used, rather than one lump sum due at registration? Don't know about Indiana, but here you pay sales/use tax on business items. The only thing you can get a free ride on is stuff for resale (because they know they'll get get the tax from the eventual consumer). Back to top Peter R. Guest Posted: Tue Dec 07, 2004 5:47 pm    Post subject: Re: Getting plane. Jon Kraus (jkraus (AT) indy (DOT) rr.com) wrote: Quote: Our plane is going to be used for business purposes sometimes. Other times for pleasure. Indiana doesn't care. They want the sales tax. Jon, with due respect, that really doesn't answer my question (or, maybe it does and I am just dense). Does Indiana allow you to collect the sales tax for each hour of use rather than pay the entire amount up front (again, with the concept that you are selling aircraft hourly time to your business)? If no, then is it true that all businesses in Indiana must pay a sales tax to the state on goods and services purchased up front, despite the fact that these goods and services will be resold to a consumer and taxed again at point of sale? -- Peter Back to top Jon Kraus Guest Posted: Tue Dec 07, 2004 10:29 pm    Post subject: Re: Getting plane. Peter, As far as I know the answer to your question is No. Indiana will not let you collect the tax on an hourly basis. You can avoid the tax if you have a tax exempt ID which we do not have. For businesses that re-sell goods, they will have a tax exempt ID. Hope this helps. Jon Kraus Peter R. wrote: Quote: Jon Kraus (jkraus (AT) indy (DOT) rr.com) wrote: Our plane is going to be used for business purposes sometimes. Other times for pleasure. Indiana doesn't care. They want the sales tax. Jon, with due respect, that really doesn't answer my question (or, maybe it does and I am just dense). Does Indiana allow you to collect the sales tax for each hour of use rather than pay the entire amount up front (again, with the concept that you are selling aircraft hourly time to your business)? If no, then is it true that all businesses in Indiana must pay a sales tax to the state on goods and services purchased up front, despite the fact that these goods and services will be resold to a consumer and taxed again at point of sale? 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