Trading In A Canadian Registered Aircraft for a US Registered aircraft
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Trading In A Canadian Registered Aircraft for a US Registered aircraft
I suspect this is not possible but sometimes people have very creative ideas on these forums...so here it goes
In Canada, when you trade in your car via a dealer for another car you only have to pay the tax on the difference.
With that...I am looking at an airplane that a US dealer is selling (N registered). I have my existing airplane (Canadian registered) that I am selling it and the dealer would love to get.
Is there a way to trade in the Canadian aircraft to the US dealer, buy the N registered aircraft and bring it back to Canada but only pay the tax on the difference?
I am guessing its not possible because the N registered aircraft has not already had all the import taxes applied. Looking for creative loops holes that I am missing.
In Canada, when you trade in your car via a dealer for another car you only have to pay the tax on the difference.
With that...I am looking at an airplane that a US dealer is selling (N registered). I have my existing airplane (Canadian registered) that I am selling it and the dealer would love to get.
Is there a way to trade in the Canadian aircraft to the US dealer, buy the N registered aircraft and bring it back to Canada but only pay the tax on the difference?
I am guessing its not possible because the N registered aircraft has not already had all the import taxes applied. Looking for creative loops holes that I am missing.
Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
Your guess is correct.
Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
No, there is not.
Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
It can be done under some circumstances .
Just one month ago we did just that , traded a Canadian airplane for a US airplane .
Mind you both aircraft have not flown in years. We trucked the Canadian aircraft to the US, dropped it off and returned to Canada with the US Aircraft.
At the border all Canada Customs was documentation from both parties that showed agreement to the deal and the value of the US aircraft.
We then paid the taxes on the difference and went on our way .
Just one month ago we did just that , traded a Canadian airplane for a US airplane .
Mind you both aircraft have not flown in years. We trucked the Canadian aircraft to the US, dropped it off and returned to Canada with the US Aircraft.
At the border all Canada Customs was documentation from both parties that showed agreement to the deal and the value of the US aircraft.
We then paid the taxes on the difference and went on our way .
Last edited by fleet16b on Mon Sep 25, 2017 5:07 am, edited 1 time in total.
...isn't he the best pilot you've ever seen?....Yeah he is ....except when I'm shaving.........
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Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
We are both Canadian and US aircraft dealers. Canadian dealer can import the plane and sell it to you and charge tax on the diff no problem.
Dealer pays GST at import but gets it back.
Dealer pays GST at import but gets it back.
Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
As the OP was asking about how to avoid paying the taxes, your situation doesn't help?fleet16b wrote:We then paid the taxes and went on our way .
Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
Ahhh maybe you should read his post again .AirFrame wrote:As the OP was asking about how to avoid paying the taxes, your situation doesn't help?fleet16b wrote:We then paid the taxes and went on our way .
He is looking for a way to only have to pay tax on the difference between aircraft values not avoid taxes altogether
...isn't he the best pilot you've ever seen?....Yeah he is ....except when I'm shaving.........
Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft
No, I read his post clearly, and yours. Maybe you should read your post again, at least what you posted originally and I quoted above.fleet16b wrote:Ahhh maybe you should read his post again.AirFrame wrote:As the OP was asking about how to avoid paying the taxes, your situation doesn't help?fleet16b wrote:We then paid the taxes and went on our way .
He is looking for a way to only have to pay tax on the difference between aircraft values not avoid taxes altogether
Now that you've edited your post it makes more sense. I didn't know they would take a trade into account at the border.