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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Thursday, August 11, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00
CPE
ALL

This course will highlight options to eliminate or lessen state sales taxes on high-dollar purchases. Sales and use taxes on expensive items can significantly increase the purchase price. Our sales and use tax experts will discuss strategies to abate these taxes for purchases of planes, yachts, vehicles, and other costly acquisitions.

Faculty

Thomas A. Alston
President and CEO
Aero & Marine Tax Professionals

As a California Sales & Use Tax Expert, Mr. Alston specializes in helping his clients avoid sales & use tax from the state of California. 

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Joshua K. Lawrence
Partner
Hodgson Russ LLP

Mr. Lawrence concentrates his practice on state and local taxation, focusing on New York State and New York City tax matters, as well as multistate tax planning. He represents clients in audits and disputes with the New York State Department of Taxation and Finance and New York City Department of Finance and is experienced in handling personal income tax and corporate tax matters. Mr. Lawrence also has significant experience in tax litigation at the administrative and appellate levels.

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Sean Slavin
Tax Consultant
Assessment Counselling Services, LLC

Mr. Slavin worked in public accounting for several years, servicing both high net worth individuals and business entities before joining ACS in 2018. He has experience in income tax preparation, tax planning, estate planning, IRS/FTB audit representation and utilizes those qualities at ACS. Mr. Slavin primarily works on ownership issues and personal property. Within personal property he specializes in audit representation and aircraft assessment issues.

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Description

With state sales tax rates from 0-7.25 percent, not including additional municipal or jurisdictional taxes, sales taxes on high-end purchases can be astonishing. The obvious way to avoid sales tax would be to purchase in one of five no sales tax states: Alaska, Delaware, Montana, New Hampshire, or Oregon. Purchasers may have to contend with municipal or jurisdictional taxes even in these states.

Purchasing an item in a no or low tax state is not enough to circumvent sales taxes; most states charge use taxes on items brought in or used within the state. These use taxes come without statutory time restrictions and can be assessed indefinitely.

States do offer specific exemptions from sales tax on qualifying purchases. For example, Florida and New York are two states that provide exemptions for watercraft purchases by nonresidents if the boat is removed within a specific time frame and used in another state. Similarly, many states offer fly-away exemptions for airplane purchases. These exemptions require the removal of the aircraft from the state within a specific time to qualify for the exemption.

Several states do not need fly-away exemptions because they do not tax aircraft purchases. Among these states are New York, Delaware, and Oregon. Recently, a bill has been introduced in Florida eliminating their sales and use taxes on airplane purchases. Florida now has a 10-day fly-away exemption. Staying abreast of multiple states and jurisdictional sales tax requirements is challenging. However, the tax savings on high-ticket purchases are worth the pain.

Listen as our knowledgeable panel guides you through strategies to lower state sales tax on expensive assets.

Outline

  1. Sales tax on high-end purchases: introduction
  2. No-tax and low-tax states
  3. Exemptions
  4. Use tax
  5. Property taxes
  6. Specific items
    1. Airplanes
    2. Boats and yachts
    3. Vehicles
    4. Jewelry
    5. Racehorses
    6. Other
  7. Cases and rulings
  8. Managing audits

Benefits

The panel will review these and other critical issues:

  • States offering fly-away exemptions for aircraft purchases and state-specific qualifications
  • Methods to lower sales and use taxes paid on airplane and boat purchases in California
  • How to lower sales tax on vehicle purchases
  • Common exemptions available for sales tax relief in states
  • Planning considerations for the purchase and/or importation of artwork

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify specific states that require use tax payments on purchases
  • Determine strategies to lower taxes paid on vehicles
  • Decide how residency affects the imposition of sales tax in specific states
  • Ascertain which states have fly-away exemptions for aircraft purchases

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex state income tax forms and schedules; supervisory authority over other preparers/accountants. Knowledge and understanding of state taxation of warranties, including mandatory, option and extended warranties; familiarity with sales tax nexus issues.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).