SALT Transactions with Planes, Trains, & Ships
SALT Transactions with Planes, Trains, & Ships
Planning, planning and more planning! With careful planning and implementation, you can avoid the payment of sales and use tax on your acquisition of a vehicle, vessel or airplane. While planning is important, proper implementation is the key to sustaining the exemption from tax.
Before
We at Thompson Tax & Associates, LLC can help you determine the most advantageous course of action to take by analyzing your facts, circumstances and needs while navigating the maze of applicable state laws. With our most basic service, we will provide you with a written analysis which will explain the application of tax and guide you through the process. When properly implemented, your acquisition will be exempt from sales and use taxes!
During
We can also provide a more "hands on" approach with monthly monitoring of your activities to ensure that they are in line with our recommendations and documented as required by the taxing. authority. While there is some flexibility to our written guidelines, this service will ensure that missteps are not costly. This service also provides you with a documentary file to support your claimed exemption from tax upon inquiry by state auditors.
If you have already made a purchase, we can provide you with an evaluation as to whether your purchase is taxable or if there is still an opportunity to avoid the tax.
After
Many state taxing authorities exchange registration information with the FAA, Coast Guard and Department of Motor Vehicles. The taxing authorities use this information to verify (audit) the payment of applicable tax. Failure to provide proper documentation of exempt usage will result in the assessment of tax, interest and possibly penalty.
We can help you prepare for this audit by reviewing your facts and documentation for proper compliance for tax exemption. This review will identify potential issues or deficiencies with respect to available documentation and provide recommendations. We will communicate with the tax agency on your behalf and help the auditor navigate and understand your documentary evidence.