Community Forums

IamGadget · 03-02-2010, 03:53 PM

I put a deposit on a 115,000 coach...is a montana LLc a good idea? Florida sales tax waould be 6 1/2 %. Any recomendations? Thank you

a k · 03-02-2010, 04:01 PM

You bet. Goggle Montana LLC. Set it up before purchase. A lot of people use Montana Corporate. Don't let the hearsays scare you. It is doable. Here in the midwest half of them have Montana plates.

RVThere · 03-02-2010, 04:36 PM

Check with your accountant. My accountant will do ANYTHING to avoid taxes and he was queezy about this tactic. We set up the LLC but didn't pull the trigger because the loan rate was higher for the LLC purchased MH. If you keep the MH 5 years, any savings in tax and registration is offset by an increase in interest expense.

a k · 03-02-2010, 04:39 PM

Get a different accountant. His sales tax alone would be $7,000 plus personal or real estate taxes every year. You can spend a hell of a lot on interest which you can write off your taxes.

To each there own. Want to give it to the Govt or pass it on to the kids. Your choice.

I'll bet this gets closed early.

GaryKD · 03-02-2010, 04:45 PM

Hi Allen,
To avoid (not evade) Florida sales tax, if you retain your Florida domicile, you will need to keep the coach out of the state of Florida for 6 months and 1 day from the date of purchase. There are costs to setting up the LLC. You will also need temporary Florida tags to transport the coach to where ever you'll be staying for the summer. You can have all the LLC documents and Montana tags sent to where ever you are staying for the summer. This will require a calling around for a Montana LLC attorney and insurance companies who will provide insurance at a reasonable cost. The LLC attorney may have some recommendations.

This will be the way I purchase my next coach. States need to realize they must compete for a retiree's business. On this point, Florida is not competitive.

a k · 03-02-2010, 05:16 PM

Plus , put your kids (or your neighbor) as a member of the LLC and when, God Forbids, you pass on, the LLC is the owner, not your estate. Kids are stuck with it.

Quote:

To avoid (not evade) Florida sales tax, if you retain your Florida domicile, you will need to keep the coach out of the state of Florida for 6 months and 1 day from the date of purchase

Put it in a storage site.

mythplaced · 03-02-2010, 05:44 PM

Here in Co the local tax collector cruises the RV storage lots and takes the owners of RV's with Montana plates to court...

And they WIN BIG!

Property tax going back to the date you bought the RV...

Not worth the risk IMO..

a k · 03-02-2010, 06:28 PM

Does anyone personally know of anyone going to court over this?

When you get a chance, go out to your municipal airport and get some registration #s off the planes and goggle them and I'll bet half are reg in Montana or Delaware.

Route 66 · 03-02-2010, 06:50 PM

Quote:

Does anyone personally know of anyone going to court over this?

Colorado was in the news last year for going after CO residents with MT tags on their rigs.

They were all part-timers with their rigs in state.

Full timers don't have that problem.

a k · 03-02-2010, 06:58 PM

Colorado must suck big time.

IamGadget · 03-02-2010, 07:02 PM

I gave the seller a deposit today....I do not know what to do...if i want to do an LLC. I want the title...and i need to use the motorhome..I leave for new york 3rd week in march to work in the state park for 6 months..supposed to be six months. so i will then easily make it 6 months and one day.. I guess i need to know the cost of setting up LLC. the cost each year to maintain LLC. and hopefully registering the vehicle each year in Montana is not high. I would love to save the 6 1/2 % on 115,000. there is no interest write off or lender problems re a LLC in this case....this is important...thanks allen. take care

Quote:

Originally Posted by GaryKD

Hi Allen,
To avoid (not evade) Florida sales tax, if you retain your Florida domicile, you will need to keep the coach out of the state of Florida for 6 months and 1 day from the date of purchase. There are costs to setting up the LLC. You will also need temporary Florida tags to transport the coach to where ever you'll be staying for the summer. You can have all the LLC documents and Montana tags sent to where ever you are staying for the summer. This will require a calling around for a Montana LLC attorney and insurance companies who will provide insurance at a reasonable cost. The LLC attorney may have some recommendations.

This will be the way I purchase my next coach. States need to realize they must compete for a retiree's business. On this point, Florida is not competitive.

azloafer · 03-02-2010, 07:02 PM

We asked about the Montana LLC when we got our loan at the credit Union. They said that they would not give us a loan under those conditions. I don't know why; they just said that it is their policy.

Max Hubrich · 03-02-2010, 07:26 PM

Let me see if I got this straight--

1- You live in a state that you own real property in, ie a house, a building, land, etc.

2- You are a registered voter in that state.

3- You have a drivers license from that state.

4- You get summoned for jury duty in that state.

Aren't you considered a resident of THAT state?

Seems to me I remember a fellow named "Capone" spent the rest of his life in a prison for "Tax Evasion".

Isn't this "evading taxes"?

I guess others will argue it's perfectly legal-- but do you want to look over your shoulder the rest of your life? Am I off base with this logic?

I think, I personally, would sleep better if I legally changed my state of residency, in this case, to Montana- and the above mentioned points being accomplished prior to forming an LLC in that state.

I certainly am not an accountant, or a lawyer.

How about hearing from some of those type folks about this subject. Let's use Florida (as mentioned in the opening thread) as the residency state, as a "case in study" and using Montana for an LLC for the purpose of purchasing a motor home- the intent being, to avoid taxes??

How about it CPA's and Lawyers?

RVThere · 03-02-2010, 07:40 PM

Quote:

I do not know what to do

Iamgadget - you said it right there yourself. IMHO if you don't have time to think this through and decide on the PROs and CONs of your individual situation with an LLC, you may want to focus on the million other things you have to do to get this rig ready and in NY state in less than 3 weeks.