Bill of Sale

[Kupde]

Any advice as to what to put in for a value on the bill of sale from Vans?

[Carl Froehlich]

The cost of the kits, not including shipping.

Carl

[Jesse]

?1 + OVC? is what I always put.

[Kupde]

Sorry for the ignorance but what is OVC?

[bkervaski]

"Other valuable consideration"

Was told also to use $1 + OVC.

[Pat Stewart]

Jesse is correct and depending on what state you live in you made be required to download and send in the occasional sale form that basically says your not a dealer.

[Mel]

Originally Posted by Pat Stewart

Jesse is correct and depending on what state you live in you made be required to download and send in the occasional sale form that basically says your not a dealer.

In Texas an "Occasional Sale" must be between individuals to be exempt from sales/use tax. Neither the seller nor the buyer can be a dealer.

[Jesse]

The bill of sale has nothing to do with Sales or Use Tax. It is simply a formality saying that you bought a kit from Van?s and that you built the plane from a kit. Other than that you don?t even need a value on the kit bill of sale. What you paid for the kit or the plane is none of the FAA?s business. Your state Department of Revenue, on the other hand...it is their business, but they don?t get it off the kit bill of sale. When a plane is registered with the FAA as being in FL, for example, the Dept of Revenue will send the owner a letter stating that they know you have an airplane in the State and they don?t have record of you having paid Sales or Use Tax. Then you have to either show them documentation of having paid the tax or you have to tell them what you spent and pay the tax. The law in Florida is that every red cent you spend on that plane is taxable, including shipping, labor, accessories, etc. Some states just ask the basic price of the kit.

[Mel]

Originally Posted by Jesse

The bill of sale has nothing to do with Sales or Use Tax. It is simply a formality saying that you bought a kit from Van?s and that you built the plane from a kit. Other than that you don?t even need a value on the kit bill of sale. What you paid for the kit or the plane is none of the FAA?s business. Your state Department of Revenue, on the other hand...it is their business, but they don?t get it off the kit bill of sale.

This is correct!

[sglynn]

I'm reading the EAA Step-by-Step guide to registration and have a question about the forms.

1. Form 8050 asks Parts or Kit. Since only the structure is from Van's kit and all the systems are bought as parts wouldn't it be okay to select the first box that it was built from parts? The Van's structure is less than half the value and less than half the parts if you add up wires, connectors, tubes, Avionics, lights etc.



thanks