Initiating Permit or Quota Sales
Before you can legally sell or transfer fishing permits or quota, you must comply with certain state and federal government requirements.
Links to several required forms are in this section.
Selling federal IFQs?
You must complete an Application to Transfer QS/IFQ form.
Your buyer will need to hold a Transfer Eligibility Certificate, obtained by completing an Application for Eligibility to Receive QS/IFQ form.
Selling an Alaska State commercial fishing permit?
If you are planning to sell or transfer an Alaska State commercial fishing permit, at least 60 days before the transaction you need to:
- Complete a Notice of Intent to Permanently Transfer Entry Permit form
- To complete the transfer, you and your buyer must complete a Request for Permanent Transfer of Entry Permit form together.
Tax considerations
Capital gains taxes are due upon the transfer or sale of permits and quota. Many fishermen amortize the cost of permits and quota, so the net sale price will be taxable.
Find a discussion of transfer tax implications in the Directed Transfer publication (below). Check with your tax preparer to better understand these implications in your overall exit planning.
Resources
Will your boat and permits remain in your family or community after you retire? The amount of capital required to enter the fishing business has increased, decreasing the likelihood that a new fishermen will be able to buy your business in one transaction. With forethought, however, you can still pass all or most of your business assets to a person or group in a “directed transfer.”
This publication introduces established fishermen to the subject of retiring from fishing, discusses transfer strategies and examines tax/retirement implications. By encouraging established fishermen to pass on their business skills, this book also helps foster the next generation of Alaska fishermen.