Trading In A Canadian Registered Aircraft for a US Registered aircraft

This forum has been developed to discuss aviation related topics.

Moderators: ahramin, sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog

Post Reply
Message
Author
harleyboy
Rank 0
Rank 0
Posts: 3
Joined: Wed Sep 13, 2017 9:24 pm

Trading In A Canadian Registered Aircraft for a US Registered aircraft

#1 Post by harleyboy » Wed Sep 13, 2017 9:55 pm

I suspect this is not possible but sometimes people have very creative ideas on these forums...so here it goes

In Canada, when you trade in your car via a dealer for another car you only have to pay the tax on the difference.

With that...I am looking at an airplane that a US dealer is selling (N registered). I have my existing airplane (Canadian registered) that I am selling it and the dealer would love to get.

Is there a way to trade in the Canadian aircraft to the US dealer, buy the N registered aircraft and bring it back to Canada but only pay the tax on the difference?

I am guessing its not possible because the N registered aircraft has not already had all the import taxes applied. Looking for creative loops holes that I am missing.
---------- ADS -----------

User avatar
AirFrame
Rank (9)
Rank (9)
Posts: 1623
Joined: Sun Oct 11, 2009 10:27 pm
Location: Sidney, BC
Contact:

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#2 Post by AirFrame » Fri Sep 15, 2017 6:42 am

Your guess is correct.
---------- ADS -----------

Broker
Rank 1
Rank 1
Posts: 31
Joined: Sat Mar 18, 2017 7:52 am

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#3 Post by Broker » Fri Sep 22, 2017 2:00 am

No, there is not.
---------- ADS -----------

fleet16b
Rank (9)
Rank (9)
Posts: 1100
Joined: Mon Nov 03, 2008 11:49 am
Location: aerodrome of democracy

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#4 Post by fleet16b » Fri Sep 22, 2017 6:38 am

It can be done under some circumstances .

Just one month ago we did just that , traded a Canadian airplane for a US airplane .
Mind you both aircraft have not flown in years. We trucked the Canadian aircraft to the US, dropped it off and returned to Canada with the US Aircraft.
At the border all Canada Customs was documentation from both parties that showed agreement to the deal and the value of the US aircraft.
We then paid the taxes on the difference and went on our way .
---------- ADS -----------
Last edited by fleet16b on Mon Sep 25, 2017 5:07 am, edited 1 time in total.
...isn't he the best pilot you've ever seen?....Yeah he is ....except when I'm shaving.........

peterdillon
Rank 1
Rank 1
Posts: 31
Joined: Mon Sep 15, 2014 8:16 pm

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#5 Post by peterdillon » Fri Sep 22, 2017 8:17 pm

We are both Canadian and US aircraft dealers. Canadian dealer can import the plane and sell it to you and charge tax on the diff no problem.
Dealer pays GST at import but gets it back.
---------- ADS -----------

User avatar
AirFrame
Rank (9)
Rank (9)
Posts: 1623
Joined: Sun Oct 11, 2009 10:27 pm
Location: Sidney, BC
Contact:

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#6 Post by AirFrame » Sat Sep 23, 2017 8:01 am

fleet16b wrote:We then paid the taxes and went on our way .
As the OP was asking about how to avoid paying the taxes, your situation doesn't help?
---------- ADS -----------

fleet16b
Rank (9)
Rank (9)
Posts: 1100
Joined: Mon Nov 03, 2008 11:49 am
Location: aerodrome of democracy

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#7 Post by fleet16b » Mon Sep 25, 2017 5:05 am

AirFrame wrote:
fleet16b wrote:We then paid the taxes and went on our way .
As the OP was asking about how to avoid paying the taxes, your situation doesn't help?
Ahhh maybe you should read his post again .
He is looking for a way to only have to pay tax on the difference between aircraft values not avoid taxes altogether
---------- ADS -----------
...isn't he the best pilot you've ever seen?....Yeah he is ....except when I'm shaving.........

User avatar
AirFrame
Rank (9)
Rank (9)
Posts: 1623
Joined: Sun Oct 11, 2009 10:27 pm
Location: Sidney, BC
Contact:

Re: Trading In A Canadian Registered Aircraft for a US Registered aircraft

#8 Post by AirFrame » Mon Sep 25, 2017 6:45 am

fleet16b wrote:
AirFrame wrote:
fleet16b wrote:We then paid the taxes and went on our way .
As the OP was asking about how to avoid paying the taxes, your situation doesn't help?
Ahhh maybe you should read his post again.
He is looking for a way to only have to pay tax on the difference between aircraft values not avoid taxes altogether
No, I read his post clearly, and yours. Maybe you should read your post again, at least what you posted originally and I quoted above.

Now that you've edited your post it makes more sense. I didn't know they would take a trade into account at the border.
---------- ADS -----------

Post Reply

Return to “General Comments”