Help, first timeshare! Sales tax on a resale purchase in California?

[krem]

Do I need to pay sales tax or other state/local taxes on a timeshare resale in California? I am myself located in California and the seller (private party) is located in Missouri.

I have been searching TUG threads and the California BOE site for hours with no success. Thanks for any input!

 

[DeniseM]

I don't know how you would even go about paying the sales tax. I have never heard of anyone doing that on a private sale of 1 unit. In fact, I don't think a lot of people declare 1 private sale on their taxes at all, under circumstances like this. In other words, the state is never going to know about this transaction.

All of you Boy Scouts - I'm just stating my opinion about what I usually see happening on TUG. This is not financial or tax advice, nor am I making a recommendation.
If you would like to advise the OP on how he can/should pay the sales tax, have at it, but spare me the tax lectures.

 

[Conan]

Timeshare interests are real property.

"REAL PROPERTY—Sales and purchases of land, along with the structures thereon, and their component parts, and other items permanently attached to the land sold are generally not subject to tax because such items do not fall within the definition of tangible personal property under the Sales and Use Tax Law."
http://www.boe.ca.gov/pdf/pub61.pdf

There's a different rule for timeshare interests in a cruise ship. Boats are tangible personal property, and those sales are taxable.
http://www.boe.ca.gov/lawguides/business/current/btlg/vol2/suta/395-0380.html

 

[davidvel]

I don't know how you would even go about paying the sales tax. I have never heard of anyone doing that on a private sale of 1 unit. In fact, I don't think a lot of people declare 1 private sale on their taxes at all, under circumstances like this. In other words, the state is never going to know about this transaction.

All of you Boy Scouts - I'm just stating my opinion about what I usually see happening on TUG. This is not financial or tax advice, nor am I making a recommendation.
If you would like to advise the OP on how he can/should pay the sales tax, have at it, but spare me the tax lectures.

I sell a lot of stuff for cash, and generate income from them. I buy lots of fancy stuff with my proceeds. But, the cops and the state tax boards have no idea I do this. So, spare me the morality and tax lectures.

Sincerely,
Al Capone

 

[DeniseM]

Hi David - thank you so much for your witty input. Have you every bought or sold a timeshare on the resale market? Did you pay sales tax? We'd love to hear all the details, because it seems like its not the standard procedure.

 

[davidvel]

Hi David - thank you so much for your witty input. Have you every bought or sold a timeshare on the resale market? Did you pay sales tax? We'd love to hear all the details, because it seems like its not the standard procedure.

I have never paid sales/use tax on the purchase of a timeshare, and don't believe there is any such tax due as Canon details. (there could be income tax due by seller, of course.) However, there is in fact a way to pay sales/use tax on things that should be taxed, but you were not charged for (such as out of state internet sales where goods are used in the state), on your state income tax form. This is line 91 of CA form 540.

My sarcastic analogy was directed at the idea that because the tax authorities might not know about a small transaction, that it is in some way pertinent to the OP's question: "Do I need to pay sales tax or other state/local taxes on a timeshare resale in California?" I get what you were saying, but just wanted to point this out in a funny comparison.

 

[DeniseM]

Great - funny stuff. Would you like to be jumped into my gang?

 

[jules54]

I believe the correct phrase is "Would you like to be blooded into my gang"