Community Forums

GaryKD · 02-11-2011, 09:23 AM

Hi Shomeyankee,
We have a very different view of paying taxes. Every person should take every deduction that is part of the tax law. Businesses and individuals have the ability to reduce their tax bill by a variety of means that are part of the tax laws. Inferring that those who create an LLC are in need of being made fully aware of ethical ramifications is ridiculous. Creating an LLC that holds appropriate assets is a valid way to ensure taxes are paid correctly and by the laws of the state where the assets are held.

Shomeyankee, do you complete tax returns? Do you reduce your taxable income by taking advantage of all the law allows? If so, you are just like the rest of us. It might be best if you stopped preaching to those who are no different than you or anyone else.

Continuing on with your comment "If you are the type of person, or should I say "LLC", that is fully prepared to push the envelope". I don't push any envelopes by following the laws that are written for the each citizen to follow.

Continuing on "and defend yourself in court". Shomeyankee, every action any person takes can end up in court. I've been in IRS court and easily (remarkably easy) won each and every time. The taxing authorities have never received additional tax from me or any of my businesses.

Continuing on "as well as to the millions of folks that have paid their local tax", I pay taxes at all level of government. I pay my fair share, according to the law. And not a penny more? Being a private citizen, I see no reason to explain my business and/or tax situation to anybody. If anyone were to ask, I would consider them rude and low class.

Continuing on "be fully prepared to explain why you have Montana plates" explain to who? Explain to you? Let's try this again. It is none of your business.

Please consider not casting a net that all those who create LLCs are people who are evading their fair share of taxes. That is just not the case. It matters not if they are creating their first LLC or have had LLCs for years, there are very valid reasons for having LLCs. It would be terrific if you realized this.

Shomeyankee · 02-11-2011, 09:28 AM

Quote:

Originally Posted by a k

The problem is, they are now going to tax you every year as personal property. I'm sorry it didn't work out for you. If you could have taken a second mortage on your existing home and paid cash for your RV, they wouldn't of known. And you could have written the interest off on your MO taxes.

It seems a lot of people do without because of the never ending taxes. It doesn't do anyone any good.
The tax man wants to take all your money and do everything for you.

How do you think that ruler of Egypt got 70 Billion dollars? From the USA. Your tax dollars at work.

PS: 25% of the RV's in my park here in Mississippi have Montana plates.

Yes AK, the financial ramifications are huge and I'm not a wealthy man. I am now certain there were steps I could have taken (I.E. second mortgage on home) to avoid alerting state at inception, but I feel I would have always been looking over my shoulder.............all I'm saying is that I initially created Montana LLC because, as a new motorhome owner, I was lead to beleive that "everyone" was doing it........I failed to factor in the "stigma" associated with driving around with Montana Plates..........while it is generally accepted amoungst the more affluent and perhaps in your Mississippi Park, it is clearly viewed by others as a way the wealthy circumvent the system...........It all comes down to what each individual needs to do to be comfortable and at peace...........I'm really and truly not trying to preach, I just wish that i woudl have had access to this blog to help me gather information and then make an informed decision.........that is all I'm saying...............I've now done my $1100 worth of ranting and wish everyone a great year of RVing!

Shomeyankee!

a k · 02-11-2011, 09:38 AM

I'm sorry too. I which there was something we could have helped you with before all this happened. The only reason I did what I did was a lot of other's before me guided me thru the process. I would have had to sit in this stupid snowed in house where I'm in now and watched TV the rest of my life.

PS: Make sure they put a RV park at the new casino they are going to build.

GaryKD · 02-11-2011, 10:11 AM

Shomeyankee,
Your choice of words continues to be offensive. Like "while it is generally accepted amoungst the more affluent and perhaps in your Mississippi Park, it is clearly viewed by others as a way the wealthy circumvent the system"

You still don't get it.

a k · 02-11-2011, 10:51 AM

Just for the heck of it, i just looked up a communications giant that has it's world headquarters in NY City but has it's whole fleet of jets,and a slug of them,registered in Montana under a different named LLC. That can't be rite can it? How does that work?

a k · 02-11-2011, 11:07 AM

Do you ever think why the Feds give you a deduction for a safety deposit box at your bank. The same way they know you borrowed money. So they know what you have and where it's at.

Shomeyankee · 02-11-2011, 05:14 PM

Quote:

Originally Posted by GaryKD

Hi Shomeyankee,
We have a very different view of paying taxes. Every person should take every deduction that is part of the tax law. Businesses and individuals have the ability to reduce their tax bill by a variety of means that are part of the tax laws. Inferring that those who create an LLC are in need of being made fully aware of ethical ramifications is ridiculous. Creating an LLC that holds appropriate assets is a valid way to ensure taxes are paid correctly and by the laws of the state where the assets are held.

Shomeyankee, do you complete tax returns? Do you reduce your taxable income by taking advantage of all the law allows? If so, you are just like the rest of us. It might be best if you stopped preaching to those who are no different than you or anyone else.

Continuing on with your comment "If you are the type of person, or should I say "LLC", that is fully prepared to push the envelope". I don't push any envelopes by following the laws that are written for the each citizen to follow.

Continuing on "and defend yourself in court". Shomeyankee, every action any person takes can end up in court. I've been in IRS court and easily (remarkably easy) won each and every time. The taxing authorities have never received additional tax from me or any of my businesses.

Continuing on "as well as to the millions of folks that have paid their local tax", I pay taxes at all level of government. I pay my fair share, according to the law. And not a penny more? Being a private citizen, I see no reason to explain my business and/or tax situation to anybody. If anyone were to ask, I would consider them rude and low class.

Continuing on "be fully prepared to explain why you have Montana plates" explain to who? Explain to you? Let's try this again. It is none of your business.

Please consider not casting a net that all those who create LLCs are people who are evading their fair share of taxes. That is just not the case. It matters not if they are creating their first LLC or have had LLCs for years, there are very valid reasons for having LLCs. It would be terrific if you realized this.

Gary: You make many great points!!...........I respect your position greatly and do understand your position. You were right to challenge my comments that "cast a net" over all those that create LLC's......There are many legitimate reasons fo creating LLC's and I shouldn't have been so general. Good luck to you and I apologize if i offended you or anyone else................Again, happy RVing to you and to all!

Shomeyankee

**JohnRR** · 02-11-2011, 08:24 PM

Quote:

Originally Posted by Shomeyankee

I failed to factor in the "stigma" associated with driving around with Montana Plates..........

Then there sure are a lot of trucking companies with stigma attached to them and their fleets.

Iron Man · 02-11-2011, 08:46 PM

While the LLC's may have served the usefullness and are completely legal, states are trying to impose registration and/or taxes where the coach spends much of it time and the states are documenting it with pictures. The states are trying to close the legal "loophole" of LLC ownership. The issue of ownership becomes moot and where the location of the coach becomes the deciding factor. The owner must then ask themself if it worth the fight with the state.

Romeo · 02-11-2011, 11:22 PM

A few years ago I began to notice that all the rental cars here in my city in Washington had Florida plates. I began to wonder how they could have cars with Florida plates housed in Washington... then I got kinda of mad because I had to pay the ridiculous amount that I had to pay for my licence plates.

Back when I had a pickup and camper the State made me pay for license plates (based on the value of the vehicle), gross weight fees, and I had to buy license plates for the pickup camper. Those fees were in addition to sales tax on the pickup and camper. I eventually decided that if I pay gross weight fees to haul, I shouldnt have to buy a license plate for the camper... so I stopped renewing the camper plate. I guess the police agreed with me because I was never cited for expired plates on the camper.

I also got mad when I made the deal on the motorhome (without thinking about sales tax) and then when closing the deal had to come up with an additional 8.7% of the purchase price, for sales tax.

I would like to upgrade the motorhome in preparation for retirement, but the thought of "giving" the State another $15,000 to $20,000 for the privilege of buying a newer motorhome makes me ill and is keeping me from buying.

BTW, when I bought the current MH, I looked into setting up a Montana LLC. I called a lawyer in Montana that specialized in LLC's and was told that it was really risky for a Washington resident to do that for that purpose of buying a MH. He said that Washington was actively going after residence that were doing that. I decide to bite the bullet and "give" the State the 8.7% for the peace of mind... Grrrrrr

I have lived in Washington for the last 18 years, but grew up in Oregon and as such, still not use to all the "fees" that one is charged in Washington. Oregon plates were $10 a year, one didnot have to license a utility trailer to haul lawn clipping to the dump, or have to license a boat trailer. Today, I have to license two cars, the golf cart trailer, the boat trailer, the motorhome, the utility trailer... think I'm missing something... it seems like at last count I had 7 license plates to renew. I just bought a gas powered power washer. I suppose that if the State finds out about that, I will have to buy a license plate for it.

And then, of course, having so many license tabs to stick on, I missed one last year and had to pay a $125 fine... had the tab, just forgot to put it on.

I was trying to stay out of this thread, but couldnt go any longer without ranting!

It seems to me that large dollar purchases like private airplanes, expensive boats, $300,000 motorhomes should be taxed differently. Especially since this type of purchase can be a recurring purchase. We dont pay sales tax on the purchase of a home; we pay property tax on a yearly basis. When we sell we stop paying. Yet on a motorhome we pay it all up front. If we sell it the next day and buy another one, we pay it all again.

StStg1 · 02-12-2011, 09:25 AM

I may have missed the answer to my question. If so, I apologize. I live in TX and register my vehicles here, and paid the sales tax when I purchased them. MY question is this. If I travel to another state and decide to stay there for an extended period, use their roads and so forth, Are they coming after me to reregister my vehicles and pay their state sales tax? It seems once you've paid the sales tax in the state of purchace, either through an LLC or individually, any state should be satisfied. After all the tax was on the sale of the vehicle. If however, you purchased the vehicle in one state then formed an LLC in another, I belive the state where the purchase was made deserves to collect the sales tax. As for as plates, I think the revenue should go to the state involved and you should comply with that state's licencse laws. Just my opinion.

GaryKD · 02-12-2011, 06:23 PM

Hi StStg1,
This post comes from a "non-lawyer spokesperson"

The bottom line answer to your question is no. If your tags and residence are in Texas and you want to spend several months in another state, the other state is not going to come after you unless you meet the qualifications of being a resident in the other state. Every state has a DMV web site. Go to that site and read how that state determines a resident. I spend 5+ months a year outside of my home state. Sometimes I'll spend up to 2 months in another state with out moving. This isn't even on my list of things to worry about.

For Florida, the rules are: "In the state of Florida, a motor vehicle is required by law to be registered within ten days of the owner either becoming employed, placing children in public school, or establishing residency. Registering your motor vehicle goes hand in hand with the titling process."

As to sales tax, for Florida the rules are: "You bought it more than six months ago If the motor vehicle was purchased six months or more before being brought into Florida, Florida sales or use tax or local discretionary sales surtax do not apply. You'll need to show proof that you used it for six months or more in another state or jurisdiction.
You bought it less than six months ago If the motor vehicle was purchased and used less than six months in another state, territory of the United States or the District of Columbia, the full amount of the six percent Florida sales or use tax and local discretionary sales surtax is required. However, that is offset by the sales tax you paid in the prior jurisdiction. For example, if you owe 6% to Florida, but you paid 4% to another state, you will only owe 2% to Florida."

This information can be found at Florida DHSMV - New Residents

StStg1 · 02-13-2011, 08:39 AM

Thanks Gary for the info. Now when I go out of state, I will check to make sure I don't become a resident of that state by accident. All states have something to offer, but I like my resident state to be TX. Thanks again.

cb5300 · 02-15-2011, 04:22 PM

Quote:

Originally Posted by GaryKD

Hi StStg1,
You bought it less than six months ago If the motor vehicle was purchased and used less than six months in another state, territory of the United States or the District of Columbia, the full amount of the six percent Florida sales or use tax and local discretionary sales surtax is required. However, that is offset by the sales tax you paid in the prior jurisdiction. For example, if you owe 6% to Florida, but you paid 4% to another state, you will only owe 2% to Florida."

This information can be found at Florida DHSMV - New Residents

Then I think if you had to pay 7% Sales Tax to another jurisdiction then Florida should pay you 1% back...Yeah, I know, "FAT CHANCE of that happening..."