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I am considering registering my kit (Sonex 1678/B-Conversion) prior to completion as "owning" an acft may be a requirement before renting a hangar at the local airport, when one becomes available. I have a couple of questions for those of you who have already completed your registration:

1. Is there any advantage/disadvantage to doing so now, aside form being able to rent hangar space?
2. On the AC Form 8050-2 (Bill of Sale) received from Sonex, what amount did you use for the "in consideration of $...." section ? (initial kit price, with invoice as back-up support if needed?)
3. On the AC Form 8050-2 (Bill of Sale) received from Sonex, what date did you use for the "does this____ day of ____ hereby sell..." section? (the date on the origianl kit invoice or the day we are applying for the registration?)
4. Any other advice would be greatly appreciated.


Sonex 1678

I can’t help with the bill of sale questions since I scratch built and didn’t buy a kit but two things to consider are taxes and registration fees. Once you register the aircraft with the FAA you may or may not be on the hook for the sales tax owed to the state for your kit you bought out of state as well as local registration or taxes for where you keep it. In Connecticut when I registered they wanted proof that I paid sales tax on all the parts I bought for the plane. I had to fill out a Use Tax form and pay around 2k. The airport I keep my plane at also has a $100 yearly town aircraft registration fee I had to start paying once I had a tie down spot reserved. We don’t pay property taxes on aircraft in Ct so the registration fee is in place of that. These are all costs you may or may not have to pay eventually depending on your state laws but they might be worth checking into so you don’t get an unexpected bill.

Keith
#554

In addition to what Keith said (and those are valid reasons why you may want to delay registering your airplane with the FAA), then if your airport accepts Federal funding, it should comply with the hangar rental policy adopted by the FAA two years ago. That policy permits the building of an aircraft in a rented hangar and that shouldn't require that the project be registered with the FAA in its early stages. You may have to provide the airport with a copy of the kit "bill of sale" and meet some progress deadlines........... but this is all my interpretation and you should discuss your situation and the relatively new FAA policy with the airport management ASAP. Good luck!

Art,,,,,,,,,,,,,,,,,,,,Sonex taildragger #95,,,,,,,,,,,,,,,,Jabiru 3300 #261

Keith makes a very good point.

I registered my XenosB early, and received a notice from the county the next tax year. Fortunately in West Virginia, gliders are tax exempt, but I had to contact the county assessor’s office and make them aware of the provision in the state code. No tax bill for the Xenos this year!

Pete


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sonex1678 wrote:I am considering registering my kit (Sonex 1678/B-Conversion) prior to completion as "owning" an acft may be a requirement before renting a hangar at the local airport, when one becomes available. I have a couple of questions for those of you who have already completed your registration:

1. Is there any advantage/disadvantage to doing so now, aside form being able to rent hangar space?
2. On the AC Form 8050-2 (Bill of Sale) received from Sonex, what amount did you use for the "in consideration of $...." section ? (initial kit price, with invoice as back-up support if needed?)
3. On the AC Form 8050-2 (Bill of Sale) received from Sonex, what date did you use for the "does this____ day of ____ hereby sell..." section? (the date on the origianl kit invoice or the day we are applying for the registration?)
4. Any other advice would be greatly appreciated.

Hello Doug,

There are two forces in play here. One is the FAA, and the other is your state department of revenue. Each of these entities look at things differently. From the FAA's standpoint, it won't make any difference what date you put on the bill of sale or what amount you list. In fact, 99% of the bills of sale I've seen say "$1 + OVC" in the "in consideration of..." space. The FAA doesn't care what you paid for the airplane (or kit). All they care is that all the items on the form are filled out correctly.

Now, the state DOR might see things differently. And every state is different to boot. Some will use the date on the bill of sale as the date sales/use taxes are due, and thus charge late payment penalties if you wait too long after that date. Other states don't seem to worry as much about the exact date as long as they get their money. Most if not all states, however, will want to see an invoice showing the purchase price so that they can get their due in tax revenue.

So you might want to check with other owners or builders in your state and see how they were treated by the state DOR when they bought or completed their airplane. What they do here in Wisconsin is different than what other states do, so it's hard to give accurate advice. I'd suggest you do some local research and see what you can find out.

Thanks for everyone's input. If anyone has any additional info related to registering in Florida, it would be appreciate. Seems like there is no right or wrong answer, I just need to be ready for the tax man....

If you haven't already done so, contact EAA Chapter 1288 in Valkaria. 1288.eaachapter.org

Can anybody offer advice for the $$ amount and date for the bill of sale? I'm doing the initial registration and I'm in Pennsylvania. I'm guessing based on The EAA guide that the model is "my name Sonex B".
Thank...
Peter