Gift Tax for a yacht? | TigerDroppings.com

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jsquardjj
LSU Fan
Member since Oct 2009
464 posts

Gift Tax for a yacht?



Strange situation, but my boss is buying a 42' yacht in cash but would like to put it in my name. He does not live in New Orleans and I will be maintaining it.
My question is, will there be a problem with him buying a boat in my name for IRS purposes? There is no sales tax for a boat purchase in New Orleans (it is considered a "casual sale" by state law), but I am worried about gift tax or anything else that would raise a flag to the IRS as to how I was able to get a purchase of this size in my name.
Does the IRS even see this purchase?



A good recommendation for an accountant in the area would also be helpful.
TIA







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Athanatos
Vanderbilt Fan
Baton Rouge
Member since Sep 2010
6500 posts

re: Gift Tax for a yacht?


quote:

but would like to put it in my name


Why?






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southernelite
McNeese State Fan
New Orleans
Member since Sep 2009
41289 posts

re: Gift Tax for a yacht?


quote:

Why?



Sounds like he's trying to protect it from community property laws?






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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
120715 posts

re: Gift Tax for a yacht?


Let him put it in your name. Then sell it and move to another city.







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jsquardjj
LSU Fan
Member since Oct 2009
464 posts

re: Gift Tax for a yacht?


quote:

Sounds like he's trying to protect it from community property laws?


Yes, this is one of the reasons.
I just want to make sure I cannot get hurt by accepting it in my name. He trusts me extensively, and I can use it as much as I see fit. Unless I am getting hit by the IRS, I don't see a problem with it.






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PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
10676 posts

re: Gift Tax for a yacht?


The person that is receiving the gift does not pay taxes on the item.





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Janky
LSU Fan
Team Primo
Member since Jun 2011
8344 posts

re: Gift Tax for a yacht?


Sounds shady.





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EA6B
Navy Fan
TX
Member since Dec 2012
1476 posts

re: Gift Tax for a yacht?


The last time I heard about this type of situation the DEA later showed up and start ripping apart the boat, finding hidden compartments with a lot of coke residue. The DEA did not seem to care that the guy said it was not really his boat, and they were especially interested in the fact that there was no money trail to show how he bought the boat. You never know!





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BigErn
LSU Fan
Member since Mar 2007
1983 posts

re: Gift Tax for a yacht?


think i saw this episode on dateline. good luck!





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82894 posts

re: Gift Tax for a yacht?


quote:

The person that is receiving the gift does not pay taxes on the item.

As the guy's employee, the IRS might consider it taxable compensation and not a gift.

Somebody illuminate the Poodle signal.....






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iknowmorethanyou
LSU Fan
Paydirt
Member since Jul 2007
4628 posts

re: Gift Tax for a yacht?


quote:

He trusts me extensively


Code for he's your lover.






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AngryBeavers
LSU Fan
Member since Jun 2012
3579 posts

re: Gift Tax for a yacht?


quote:

Sounds shady


His boss is running the booger sugar from Columbia...






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MoreOrLes
LSU Fan
Member since Nov 2008
17107 posts

re: Gift Tax for a yacht?








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BestBanker
New Orleans Saints Fan
stuck in a moment
Member since Nov 2011
3325 posts

re: Gift Tax for a yacht?


He could simply place ownership in a trust or a corporate entity.






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Walking the Earth
Member since Feb 2013
3860 posts

re: Gift Tax for a yacht?


Sounds cool. When's the shakedown cruise to Cartagena?





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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
15462 posts

re: Gift Tax for a yacht?


The IRS will consider the gift to be compensation to you from your employer if the value is over $25. Since the value of a 42' boat is obviously greater than $25, you'd be looking at all sorts of income, and both you and your employer would be looking at failure to withhold issues with respect to income and payroll taxes.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82894 posts

re: Gift Tax for a yacht?


/thread





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Camp Randall
Wisconsin Fan
The Shadow of the Valley of Death
Member since Nov 2005
13480 posts

re: Gift Tax for a yacht?


Dude.





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barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
38395 posts

re: Gift Tax for a yacht?


quote:

Sounds like he's trying to protect it from community property laws?


Yes, this is one of the reasons.


So its his bang boat?

Awesome.






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11386 posts

re: Gift Tax for a yacht?


So he doesn't want to take on the risk and wants to transfer it to you. Doesn't sound like the kind of boss I'd want. I wonder how tight and legal his business dealings are.





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