California’s boat and aircraft market are significant, with yacht and airplane sales generating billions annually, and more than 34,000 active commercial aircraft forecast for 2025. Dealers and brokers face severe scrutiny under CDTFA rules, as improper sales tax handling or recordkeeping can trigger costly audits, multi-year lookbacks, and substantial penalties.
Major audit triggers include out-of-state deliveries, broker/agent sales, dealer license issues, and misapplication of exemptions.
We’ll analyze your sales records, contract structures, exemption claims, and CDTFA audit exposure to build a customized defense—no cost and fully confidential.
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CDTFA audits go deep:
Failure to produce airtight documentation, misclassifying sales as “exempt” without proper proof, or incomplete recordkeeping can result in large retroactive tax assessments, penalties, and lengthy appeals.
All in-state dealer sales are taxable. Purchases from private parties or out-of-state rarely qualify for exemption without strict documentation—use tax almost always applies if registered/used in California.
You must maintain signed delivery receipts, bill of sale, registration and insurance records, and clear proof of use outside California for the required period. Missing paperwork means a denied exemption and full tax applied.
Yes. Dealers are responsible for tax collection; brokers often are not, which may shift the tax reporting burden to the buyer. Know your role, contract, and reporting duties.
Absolutely—tax applies to the full fair market value of all cash, trade-in, and bartered property.
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