Dollar value declared on glider bill-of-sale

In article ,
son_of_flubber wrote:

I'm buying a glider and the seller wants to declare the price paid as "$1000
and other good and valuable consideration". The actual sale price is
$28,000. The seller wants to do this because when he bought the glider years
ago he used the "$1000 and other good and valuable consideration" phrase on
the previous bill of sale filed with the FAA. He doesn't want to declare the
actual sales price on the FAA form and then have the IRS come after him for a
capital gains tax. The seller can only see things his way because "this is
the way that he has always done it."

My question is: if I go along with the seller's white lie, will I pay the
price down the road when I sell the glider for say $25,000? Will the IRS
come after me for a $24K capital gain?

Does the FAA automatically share the bill of sale value with the IRS? I
live in a state with no aircraft registration fee/tax so there is no
declaration of the value of the glider to my state.

The FAA bill of sale form does not require my signature, so it is only the
seller that is going on record and misrepresenting the price.

I have some other documentation that establishes the price of purchase at
$28,000 so should I show that to the FAA at this time? Or should I wait
until a potential problem comes up years down the road.

Every house I have ever bought has the same wording on the bill of sale.
"$XXX and other good and valuable considerations...". Those bills of
sale were drawn up by lawyers and I have never had a problem stemming
from those papers. So, I would not it get in the way of buying or
selling a glider.

On Nov 18, 1:10*pm, son_of_flubber wrote:
I'm buying a glider and the seller wants to declare the price paid as "$1000 and other good and valuable consideration". *The actual sale price is $28,000. *The seller wants to do this because when he bought the glider years ago he used the "$1000 and other good and valuable consideration" phrase on the previous bill of sale filed with the FAA. *He doesn't want to declare the actual sales price on the FAA form and then have the IRS come after him for a capital gains tax. *The seller can only see things his way because "this is the way that he has always done it."

My question is: if I go along with the seller's white lie, will I pay the price down the road when I sell the glider for say $25,000? *Will the IRS come after me for a $24K capital gain?

Does the FAA automatically share the bill of sale value with the IRS? * I live in a state with no aircraft registration fee/tax so there is no declaration of the value of the glider to my state.

The FAA bill of sale form does not require my signature, so it is only the seller that is going on record and misrepresenting the price.

I have some other documentation that establishes the price of purchase at $28,000 so should I show that to the FAA at this time? *Or should I wait until a potential problem comes up years down the road.

Worth noting that you are usually buying two items; a glider and a
trailer. These can be separated and handled as two transactions in
states where one or the other must be reported. There have been some
expensive trailers in states that require the price of the plane to be
reported and taxed while the trailer is not. That said I have never
seen the FAA share the prices with the IRS, but most states have now
started to watch registration very closely.

On Nov 19, 8:31*pm, Tim Taylor wrote:
On Nov 18, 1:10*pm, son_of_flubber wrote:

I'm buying a glider and the seller wants to declare the price paid as "$1000 and other good and valuable consideration". *The actual sale price is $28,000. *The seller wants to do this because when he bought the glider years ago he used the "$1000 and other good and valuable consideration" phrase on the previous bill of sale filed with the FAA. *He doesn't want to declare the actual sales price on the FAA form and then have the IRS come after him for a capital gains tax. *The seller can only see things his way because "this is the way that he has always done it."

My question is: if I go along with the seller's white lie, will I pay the price down the road when I sell the glider for say $25,000? *Will the IRS come after me for a $24K capital gain?

Does the FAA automatically share the bill of sale value with the IRS? * I live in a state with no aircraft registration fee/tax so there is no declaration of the value of the glider to my state.

The FAA bill of sale form does not require my signature, so it is only the seller that is going on record and misrepresenting the price.

I have some other documentation that establishes the price of purchase at $28,000 so should I show that to the FAA at this time? *Or should I wait until a potential problem comes up years down the road.

Worth noting that you are usually buying two items; a glider and a
trailer. *These can be separated and handled as two transactions in
states where one or the other must be reported. *There have been some
expensive trailers in states that require the price of the plane to be
reported and taxed while the trailer is not. *That said I have never
seen the FAA share the prices with the IRS, but most states have now
started to watch registration very closely.

FL requires a separate non-FAA bill of sale. And they will catch up
to you if you do not pay the sate tax. they check the FAA
registration directory.