Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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495.0000 SALE

Annotation 495.0483


495.0483 Transfer Fixtures and Equipment to a Trust. An individual transfers the book value of certain assets to a trust. The trust term is for ten years at the end of which the assets will revert to the individual as trustor. A trustee is a "person" under section 6005 and the transfer of legal title to the trustee of the trust property is a transfer of title within section 6006. However, that section also requires that the transfer be "for a consideration." The consideration must be measurable to be sufficient to meet the requirements of section 6006. The creation of a trust requires no consideration.

Since the only assets are transferred to the trustee with no measurable consideration, such as cash, notes, or assumption of liabilities flowing to the trustee, no sale occurs. 12/1/71.

(Note: Section 6285 re transfers of vehicles, vessels, and aircraft to revocable trusts.)