The problem is I have reached out to professionals and no one really has a answer. As one person told me it’s a very gray area. I suspect by the letter of the law the tax is due if a US flagged vessel enters US waters. The reality is that customs appears not to track it. If I bring my current boat to the USVI I guess I Will just pay the tax. It will make the boat easier to sell when the time comes.
G
So Stick to what you think is the reality and believe like you mention “Customs appears not to be tracking”.
A few years from now the IRS will hit you with penalties and compound interest which will probably open your eyes.
People on this forum have given you the answers previously.
