Thought I would throw this out for comment.

If you win an airplane in a sweepstakes, how would you register it and where, so as not to pay taxes and what taxes would you have to pay?
Maybe form a s-corp or llc and register that way. Just curious, you never know what will happen. By the way if you are flying in the Pierson Fl area there is a nice grass strip here and you can sail plane on the weekends. There are some old 150's/152's and other 172 etc planes for sale on the field for anyone looking.

I would register it where I live.

As far as paying taxes, if your state has a sales tax on aircraft purchases, then you would need to file a sales tax form with them for zero dollars. Usually there is a special sales tax form from the state that needs to be used.

As far as income taxes, the value of the plane, at fair market price, would need to be declared on your federal and state (if applicable) income tax forms. There is usually a specific line on the form for these types of declarations.

As always, consult with a tax specialist before following any advice given here.

I would go to myflorida.com and form an LLC as an aircraft dealer. Then go to the FAA website and file for a Dealer certificate. Register the aircraft under the dealer/LLC name and you are required to advertise the aircraft for sale at least 6 months a year.....it doesn't say anywhere that you can't ask an arm and a leg for it...I'm just say'n s'all.

Geez, If you win it, why in the world would you want to try and get out of any tax liability.

I know... Can you imagine.

Somewhere, some CEO is going to have to order his personal assistant to text his servant at his fifth ski chalet, to turn down the heat in the Bentley's garage from 75 to 74 degrees.

Ohhhhh, the humanity.

And he doesn't want to pay his taxes.

Gump

Just contact your local, friendly, trustworthy, county and state tax assessors. I'm SURE they will relieve you of ANY doubts you may have of how much you OWE their respective departments...even if you don't they will find you! The FAA always notifies them if and when you register your prize.
Hhhmmmmmmm I think I have an idea!!!
HC

Interesting replys from interesting intellectuals. I know there are a few states Montana. Fla. etc that are very avaition friendly tax wise. I just can't see giving the tax man more of my money. Maybe they could give us a bail out. Yea dream on! I guess I have to much time on my hands, watching to much news. The Hilda Beast is on now for her confirmation hearings, almost threw up looking at her so off went the tv and now listening to Neal Boortz talk about avaition. Did you hear Barny Franks comment about avaition and people who fly cooperate avaition. It just seems if you are in avaition they are out to get you. I'm just the little guy and I paid taxes on my Maule in Colorado. It was not cheap. Tumbleweed

Put it in my name and I will pay the taxes. Take delivery in Oregon, store it there for 200 days. No sales tax. bring it to your state as a used plane.

tim

qmdv wrote:Put it in my name and I will pay the taxes. Take delivery in Oregon, store it there for 200 days. No sales tax. bring it to your state as a used plane.

tim

Property tax in kaliforee is 1 % of what they think it's worth. I.E. 10,000 bucks is a hundred bucks. Tim would you take it to your personal strip ?
What kind of airplane are we talking here ?

The value of the aircraft will be reported to the IRS by the entity giving it away. The IRS expects you to report that as income. There are some things you can do if you disagree with the amount$, but not much you can do about the process as a whole: you will get the 1099, and someone will have to pay the income tax.

As for states...find a tax friendly state. The rules and hints for that are very state specific. Somewhere on the Internets there is a page showing the aircraft tax liability for each state.

Alaska does not have any taxes on aircraft purchases, BTW.