It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. But the land is an asset offsetting the mortgage. It depends on the state lease regulations if this can work. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. How much actual risk there is involved with thatwho knows. When asked by the office clerk if their Jeep was their only vehicle, they answered, yes, because technically the RV belonged to the Montana LLC. Set up the LLC here and we will cheaply register your $200,000.00 motorhome here so you don't have to pay sales tax. Whatever. Establishing a Chain of Ownership for Your Vehicle 2. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. Also, have you heard any war stories about California cracking down on Montana plates? 855-721-0777. A qualified motor vehicle is a motor vehicle used, designed or maintained for transportation of people or property and: Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms; or Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. And to the one comment about taking advantage of perks but not wanting to pay. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. In Michigan, for example, owners of RVs with out-of-state plates must owners not keep their RVs in Michigan for more than 89 consecutive days. 1 permit for all of the states & provinces you operate in, not 50+ permits. Kali also has the worst maintained roads in the west. According to Jalopnik, one way Georgia tax officials have caught up with owners of Montana-registered cars is by going through Montana registrations looking for cars with custom plates like MTBULLD0G.. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. #3 Feb 19, 2011 RacerX_GTO said: If you have an exceptional car for any reason, or youre considering registering your car in Montana, give us a call at the Select Insurance Group. I pay income tax to the state and federal government. Avoiding sales tax by using a Montana LLC is not illegal nor a scam. You don't buy the motor home, your LLC does. And I live in high taxing Michigan. e.g. They stay in one place for weeks, months, or years at a time. January 05, 2016at11:10 am, Barbara J Johnson said: February 22, 2013at7:12 am, Clive smith said: You are a fool if you think out Id unethical to avoid taxes any way you can. In some tax-aggressive states, like California, Colorado, and Georgia, revenue officials are even sending scouts into storage facility lots and RV parks to track down and identify any RVs or other high-dollar vehicles with Montana plates. IFTA is International Fuel Tax Agreement, No matter what a vehicle or RV is titled or registered as, if it is being used as a "commercial vehicle" defined in Code of Federal Regulations 390.5.. Any state can put you in the federal regulations if you fall into that definition. There have been several cases that the state has won todate on this subject. My questions around this are: Location: Off the road after 14 years full timing. I just dont register them in California. Hi: Looks as if California has found a way to make up some of the money certain RVers have been trying to cheat them out of. 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. And then title their newly-purchased vehicle in the Montana LLCs name. Make it look like you belong in Montana. You learn something new every day. Nobody else needs to hear it. If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. No matter where you fit in you'll find that iRV2 is a great community to join. Seems like unnecessary cost at an attorney. He asked to see Diannes driver license and noted it was also Texas. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Ngoc , Im certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well. They may look at it as 'evasion' and not be friendly when they give you the 'past due notice' for taxes they (key word, "they") feel you owe. If a commercial policy is used it does not provide the broader coverage of a personal policy.. We have been full time RV for 2+ years. An LLC can be used to operate a business. An LLC is an asset protection entity that has no tax standing. So, what has been happening is that the high tax states that do impose use and sales taxes and high registration fees on RVs have been taking aggresive steps to counter the scheme by writing laws and regulations that make it very difficult to take advantage of the plan. Pretty obvious, dont you think? Stay up-to-date with Club news, blog posts, events, and more. Next, they visited the local Department of Public Safety (DPS) office. And that arguments probably a loser in court. Best of all it's totally FREE! The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. In fact, since you plan to travel extensively throughout the country, to firmly establish Texas as your home, you need to follow what I call the Ten Commandments of Domicile (in this order): The reason the Washington DPS officer suspected a problem was because of the discrepancy between Texas plates, Texas driver licenses and that Montana plate on the RV. In that sentence is why you should NOT do it. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. CHP clamping down on drivers who avoid California fees. New comments cannot be posted and votes cannot be cast. Then, all your vehicles will have Texas license plates. States tax us to death!!! The state is getting theirs. The Montana LLC is the owner. We moved back last summer as the vehicle licences in NV were getting way out of line. If you drive your RV to another state every three months, they interpret that as keeping the motorhome in your home state for no more than 90 consecutive days. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. Insurance Ludwig The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. I am second owner and paid 13% tax Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). Is there a loophole for those who do Montana LLC RV Titling? Or the solution might possibly be to move to a state where there is no sales tax like NH, but the "registration" fees there are very high. Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. That's the difference. Every Montana LLC is managed per the clients need. Planning to use Montana state to register our RV And then title their newly-purchased vehicle in the Montana LLC's name. So it makes a lot of sense to do everything you can to maximize savings. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. So its obvious the vehicle hasnt just driven in from Montana for the holidays. LLC's are shams for avoiding state sales tax. All Rights Reserved. I don't feel sorry at all. 2019 Grand Design 29TBS (had a Winnebago and 3x Jayco owner), 2016 F-150 3.5L MaxTow (had Ram 2500 CTD, Dodge Durango), 130W solar and 2005 Honda EU2000i twins that just won't quit. Plus it was is tax evation and you may o r may not get caught. If your eager-beaver neighborhood agent wasnt thinking, and just added your Lambo to your personal policy, alongside your sensible minivan (hey, we dont judge! For non-residents, which the Montana LLC that owns the motorhome would technically be, an exemption to the tax would be allowed provided the motorhome is purchased by a person who is not a resident of this state at the time of purchase and is brought into this state more than 90 days after the date of purchase.. Your email address will not be published. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. So, they headed for Texas, driving the RV and towing their Jeep. I have researched state vehicle registration vs. Montana LLC and the like for a while now and have discovered articles on out of state registration enforcement . Or maybe you can give others some advice? CA has a hotline to report this. Thank you for reading the article and taking time to reply. Being from Illinois, I would still have to pay Michigan sales tax if I bought from a dealer up there, so maybe low or no sales tax states would be better. And think of the money he can save on his tags! Case in point, it's about $600 if you own a new $40,000 vehicle. Home. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? This is one of the longest-lasting controversies in the RV world and it really has to do with the fine line between tax avoidance and tax evasion. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. Other wise, Texas doesnt care. We already have contract to rent. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. We also own 2 cars still register CA and I have CA driver license. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? MS resident here. 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