What is a vessel or boat paper trade?
– Many states allow a reduction in sales or use tax on a vessel purchase for the value of a trade vessel. This has created a tendency among some buyers to arrange for passage of title for a trade through the seller and then on to a third party as evidenced only by bills of sale. The buyer maintains control and possession of the trade pending delivery to the third party. Buyer’s should be aware that such tax deductions can be disallowed should the respective state not view this as a bona fide transaction. Sellers should also be concerned about stepping into the chain of ownership, even if it is only on paper. ◄ Back / Resources ► Boat Registration Kits When do I need the services an attorney? – Maritime transactions are quite different from those involving other types of personal or real property. You should accordingly seek the advice an attorney whenever you do not fully understand the workings or implications of any particular situation or boat transaction. An attorney can also help
