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Bill of Sale

Jesse is correct and depending on what state you live in you made be required to download and send in the occasional sale form that basically says your not a dealer.
 
Jesse is correct and depending on what state you live in you made be required to download and send in the occasional sale form that basically says your not a dealer.

In Texas an "Occasional Sale" must be between individuals to be exempt from sales/use tax. Neither the seller nor the buyer can be a dealer.
 
The bill of sale has nothing to do with Sales or Use Tax. It is simply a formality saying that you bought a kit from Van?s and that you built the plane from a kit. Other than that you don?t even need a value on the kit bill of sale. What you paid for the kit or the plane is none of the FAA?s business. Your state Department of Revenue, on the other hand...it is their business, but they don?t get it off the kit bill of sale. When a plane is registered with the FAA as being in FL, for example, the Dept of Revenue will send the owner a letter stating that they know you have an airplane in the State and they don?t have record of you having paid Sales or Use Tax. Then you have to either show them documentation of having paid the tax or you have to tell them what you spent and pay the tax. The law in Florida is that every red cent you spend on that plane is taxable, including shipping, labor, accessories, etc. Some states just ask the basic price of the kit.
 
The bill of sale has nothing to do with Sales or Use Tax. It is simply a formality saying that you bought a kit from Van?s and that you built the plane from a kit. Other than that you don?t even need a value on the kit bill of sale. What you paid for the kit or the plane is none of the FAA?s business. Your state Department of Revenue, on the other hand...it is their business, but they don?t get it off the kit bill of sale.

This is correct!
 
Registration kit or parts 8050-88

I'm reading the EAA Step-by-Step guide to registration and have a question about the forms.

1. Form 8050 asks Parts or Kit. Since only the structure is from Van's kit and all the systems are bought as parts wouldn't it be okay to select the first box that it was built from parts? The Van's structure is less than half the value and less than half the parts if you add up wires, connectors, tubes, Avionics, lights etc.



thanks
 
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Bill of sale

The guy two Hanger's down for me says he chose parts and did not send in a bill of sale with the registration form . And, at his air worthiness inspection including a DAR and an FAA from the MIDO asked why he chose parts on the registration form. He said he didn't answer just smiled. Then they answered for him. "You probably did it to avoid taxes". Long pause. Then they smiled and said. "Don't worry, you got it registered. Registration or paying taxes is not our department.
 
Airframe parts kits

In PA there is no sales tax on aircraft parts. 6%, or more, on aircraft.

Parts for airframe in KIT form as sold by Vans is taxable in PA. As I was told by the very nice people in the aviation department of the state tax bureau in harrisburg. When I registered my tail number the sent a notice of tax owed because they thought it was an air worthy aircraft sale. I informed them it was a kit that is still being constructed and I just registered the number early.
 
The guy two Hanger's down for me says he chose parts and did not send in a bill of sale with the registration form . And, at his air worthiness inspection including a DAR and an FAA from the MIDO asked why he chose parts on the registration form. He said he didn't answer just smiled. Then they answered for him. "You probably did it to avoid taxes". Long pause. Then they smiled and said. "Don't worry, you got it registered. Registration or paying taxes is not our department.

When you say he chose parts instead of bill of sale what do you mean by that.
What form was used to select parts in lieu of a bill of sale. I don?t see that choice on the 8050-1 form
I?m getting ready to register and am interested in how that was done
Am I missing something?
Thanks
 
8050-55

When you say he chose parts instead of bill of sale what do you mean by that.
What form was used to select parts in lieu of a bill of sale. I don?t see that choice on the 8050-1 form
I?m getting ready to register and am interested in how that was done
Am I missing something?
Thanks

Steve it is the 8050-88 form, shown on page 13 of EAA's document for registering your experimental aircraft. See what you think. I'm inclined to use it and select parts for reasons above.
 
Yep
I actually called the FAA, since I had a couple other questions, too.
If you used more than 50% misc parts to build, you can check that box.
In my case, I did buy some kit parts from VANs, but most of the parts were bought from builders who didn't end up building. According to the FAA, this is considered Misc parts.
So, in this event, you can use the 8050-88 form instead of providing a bill of sale.
 
Bill of sale

I think you need to send in the 8050-88 regardless of what check box you select.
If you select - ?More then 50 percent was misc parts?, then don?t send a bill of sale.
If you select - ?more then 50 percent was a kit?, then attach the bill of sale.
It says this right on the form.
I?m I wrong?
 
51% rule and Approved Kit

I think you need to send in the 8050-88 regardless of what check box you select.
If you select - ?More then 50 percent was misc parts?, then don?t send a bill of sale.
If you select - ?more then 50 percent was a kit?, then attach the bill of sale.
It says this right on the form.
I?m I wrong?

If you do this do you risk being incorrect (aka "misstated" in politician speak) when you check the box that says this is an FAA approved kit?

If it is not an approved kit then there are a lot of calculations needed on an FAA form to show you meet the 51% rule.
 
Question

Would registering the airplane as an assembly of parts vs. a kit also prevent use of the additional pilot during Phase I testing per AC 90-116?
 
If it is not an approved kit then there are a lot of calculations needed on an FAA form to show you meet the 51% rule.

This checklist applies if you do not build from an "approved kit", if you modify the aircraft, and/or if you receive any amount of paid assistance.
The checklist is not difficult but is several pages long.
 
Would registering the airplane as an assembly of parts vs. a kit also prevent use of the additional pilot during Phase I testing per AC 90-116?

In a word, Yes. AC 90-116 states that, to be eligible, the aircraft must be built from an "approved kit".
 
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