NV Use Tax-property tax Question

[bret]

Now that I have and airplane and not a kit, should I initiate the process or is it bad to wait for the tax man? And how did most calculate the " value " for the appropriate tax figure?

[TS Flightlines]

No Tax----its for education and entertainment
Probably wont get away with that one.
Tom

[9GT]

I would not wait. You are going to have to cough up the money sooner or later and better to not risk paying an additional late fee or penalty trying to avoid the taxman.

[bret]

Thanks guys, and any suggestions on the second part of the question, value ? what did you give for value....for example.....

[Ironflight]

For property tax, I just waited until I heard from Lyon county - they sent me a form, I filled it out, and they sent me back the tax, which was pretty reasonable (because they REALLY undervalue the airplane, and the depreciation is really fast).

[bret]

Originally Posted by Ironflight

For property tax, I just waited until I heard from Lyon county - they sent me a form, I filled it out, and they sent me back the tax, which was pretty reasonable (because they REALLY undervalue the airplane, and the depreciation is really fast).

So that was another question, do they tell you what it is valued at, or do you tell them what you...............um......have invested into the build?

[Jesse]

Originally Posted by bret

So that was another question, do they tell you what it is valued at, or do you tell them what you...............um......have invested into the build?

I can't speak specifically to your state, but I know different states handle it differently. Some states (Virginia comes to mind) just have you pay the tax on the price of the kit. Other states (Florida and probably others) expect you to pay tax on every red cent you spent on the plane, including shipping. In Florida, they will send a letter stating that you have registered an airplane in the state and have not paid sales or use tax. They will ask you to state how much it cost. They then have the option of accepting your number or requestInt proof in the form of detailed receipts, etc.

My recommendation would be to call the department of revenue and say you have built and airplane in your garage and want to know if sales or use tax is due, and how to value the plane. They will tell you what they expect and you can deal with that person through the process. I am sure these things are handled somewhat differently at times even in the same state, depending on who you talk to and what they had for breakfast.

Someone else may have more specific info on your state, but I have found that a phone call to the DOR is the cleanest path.

[9GT]

Here is what the State of Michigan did on my RV-10: About 3 weeks after I received my AW, I got a letter from the Michigan Department Of Treasure. It stated that they found I had a recently acquired an airplane and needed information for tax purposes. I could fulfill the request one of two ways. Provide an official written appraisal from an accredited appraiser, or complete a short form declaring its value and provide documentation supporting my declaration which were copies of the receipts. The letter lead me to believe that they were knowledgeable in kit planes and values. I was to provide the documentation and send a check along with it and it was specifically stated that I MAY owe penalties afterwards. I think I lost a few receipts somewhere but they were satisfied with what they got. I was audited by the IRS many years ago and believe me, you do not want to be suspected of cheating the government of their fair share.

[Ironflight]

Originally Posted by bret

So that was another question, do they tell you what it is valued at, or do you tell them what you...............um......have invested into the build?

It was a few years ago now, but I either let them guess or I put down the price of the kit and the price of the engine - had no issues with it either way. They didn't ask for any receipts, perhaps because we moved it from Texas, and there was no requirement for us to have receipts. Lyon County was very friendly about it - not sure about Douglas.

[guccidude1]

I valued my RV-9A at the Kits cost plus engine, instruments, and prop. Experimentals are a 15 year assest, depreciated yearly until you owe nothing. Dan in Reno