On Oct 4, 8:07*am, "Matt Herron Jr." wrote:
On Oct 3, 9:01*am, hretting wrote:

I' forgot, I would get a separate bill of sale for the glider and
trailer to avoid having to chase it down later. Constello insures them
separately.
R

Costello doesn't care about the price of either. *it is strictly what
we mutually agree to. *I don't think you are required to report a
price to the FAA either. *The DMV might care about the trailer price
though. *And I don't know about my auto insurance for liability. *They
might care about trailer price too.

Matt

The feds don't care what price you put on the bill of sale, but it
will be reported to the state of California (by the feds) and if you
do not pay Use Tax (aka sales tax) on it within I think it's 90 days
you will get a bill from the State Board of Equalization. The bill
will have your tax calculated based on the $ amount you have reported
on the bill of sale times the use tax rate for your county +penalty
+interest, unless you intend to keep it out of state.

When you go to DMV (to register) you will have to pay Use Tax on the
trailer based on how much you payed for it. If you're an honest tax
payer like me you might consider having your seller give you 2
separate receipts, 1 for the trailer and 1 for the glider both adding
up to the total price of the purchase to make you trip to DMV more
enjoyable.

Then next year be prepared to get a property tax bill from your county
tax man. It will be assessed at proposition 13 rates of 1% of the
value, you will get that every year. One way around that one is if
your glider or airplane is 35 years or older you can apply for an
exemption based on a historical exemption.