montana llc crackdown california

But say your neighbors see you driving around with Montana plates and report you. Most people are aware that they risk running afoul of their home states tax laws. Just to clarify some of the initial posts. Thats what media Mogul Rupert Murdoch did. If you live in California, dont take a photograph of your Montana-tagged Testa Rosa with a backdrop of the Golden Gate Bridge. A super car claim will get sent to a special underwriting desk for special scrutiny. Part of MOTORSPORT NETWORK. Thank you for sharing very informative article. Frequently Asked. Create an account to follow your favorite communities and start taking part in conversations. Lots of carriers will take your premium, sure. And theyrepissed. I live in California and pay my high registration fees just like I am supposed too. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Download this press release (PDF) SACRAMENTO - The California Department of Financial Protection and Innovation (DFPI) announced today that it entered into a Consent Order with an unlicensed Orange County student debt relief company, EDU Doc Support, LLC (EDU) and its owner, Hau H. Nguyen (Nguyen). I need to say here that a great many RVers have taken advantage of the Montana law with no issues. That means, in effect, I own the RV with Montana plates. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. You need an attorney in California, not Montana, it is in California you (or he) have/has to appear in court. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. Michigan has a one time, lifetime registration fee for towable rvs. Live here, own property here and work here. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. Join us after the 62nd Escapade for 10 relaxing days of ocean-view camping and activities in Mexico including a sunset cruise, a tequila tasting, a paint & sip session at a local tapas bar, a day of fun at Mannys Beach Club, yoga classes on the beach, optional deep-sea fishing and ATV tours, and much more! Its been raging pretty much ever since we started the RV Lifestyle back in 2012 and it continues to be a topic we are asked about all the time. One of their focuses. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. (Truly, I forget).. I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. Required fields are marked *. Then you can be in trouble. David and Dianne had completed the process in less than one day. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. The value up to 100 percent can be written off immediately. Forming a Montana LLC and using it to purchase vehicles and other expensive pieces of personal property isnt a new concept.Thousands of car owners across the country have successfully benefited from using this technique. I sleep really well with that plate on my car. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Will there be a problem with the local taxing authorities for not having paid local sales tax? Nobody else needs to hear it. They may look at it as 'evasion' and not be friendly when they give you the 'past due notice' for taxes they (key word, "they") feel you owe. I travel with a motor coach and jeep both owned and registered by the same Montana LLC, my drivers license is from a state other than Montana, I have a rental agreement from the Montana LLC for the motor home and the jeep. It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. Stay off of social media. Testimonials. If I would be in violation of the law, I would not choose that route. Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. CHP clamping down on drivers who avoid California fees. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. Montana vehicle registrations are yearly. Thats $36,000 that stays in your pocket. To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. Most state laws are reciprocating. With that address, proof of vehicle insurance and an inspection of the towed Jeep, they headed to the county tax assessor-collector to register their vehicles. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid? I am second owner and paid 13% tax I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. It's not a front business that does zero deals with anyone a year set up solely for the purpose of the owner to evade paying taxes on a car. We have had so many expensive problems due to incompetent state employees for the past thirty years money to fix their errors has to come from some place - the residents. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. Home. I was unaware of of how this worked until a few days ago, when i spoke with a gentleman who has been doing this for several years. If the LLC is in Montana but the owner of that LLC is in Michigan. However, by not spending time in Texas, the place you are claiming as your home, you will undermine your claim that you are domiciled in Texas. In December 2007, a man named Robert Thomas bought a $351,800 RV at the Dixie RV Super Store in the city of Hammond in his home state of Louisiana. Forgetting the Montana tax avoidance scheme, buying at RV is usually the second most expensive purchase you will ever make after buying a house. http://www.foretraveloftexas.com/list-inventory.php?category=New, FREE RV Packing List (PLUS 3 Best RV Checklist Apps), Roadschool Classroom Supplies & Organizers for Your RV. All this is perfectly legal in Montana. Once law enforcement suspects youre keeping your Montana-tagged high-value vehicle in your home state, theyll be checking your Facebook and Instagram. Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. Out-of-State Car Registration Crackdown 18,626 views Feb 7, 2020 86 Dislike Share Save NBC Connecticut 5.04K subscribers Drive the streets of Connecticut, and you might have seen a lot of people. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. Is there a time factor involved? US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. Even if you want to form your LLC yourself, you can still hire us to be your Montana registered agent for just $49 a year. So it makes a lot of sense to do everything you can to maximize savings. Then, all your vehicles will have Texas license plates. The more valuable the vehicle, the greater the tax savings. Have you considered that the money grab by the states isnt exactly moral? Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. I have to laugh when I read posts like this. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. Montana Llc Crackdown . But these agents may not have the training or experience to ask the right questions, and get the right information on your application. U-Haul is headquartered in Phoenix, so it makes sense. Call your local taxing authority and ask. An LLC is an asset protection entity that has no tax standing. But, The law can be tricky about Montana LLC RV Titling. I don't cheat on these things but will be d@@med if I report someone. I just eliminated their main focus which was tax evasion. All which would be due California if the RV and LLC were properly set up in the first place. I suspect you are also outing yourself with the state in terms of where the car is located and I am sure that no good deed will go unpunished. That's $36,000 that stays in your pocket. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. . /r/Cars is the largest automotive enthusiast community on the Internet. And as far as property taxes are concerned, the owner of the RV park pays them, and passes the cost on to the RVers who stay there. Tax avoidance is why the LLC's were used by Missoula area rv dealers. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. If you form a Montana LLC and have . While Montana maintains that an RV is not a commerclal vehilce per se, in most states vehicles owned and used by businesses are considered "commercial" vehicles. Just wait til it's FREE!!! For example, Louisiana slaps a 9% tax on vehicle sales. All Montana businesses are required to have a registered agentan individual or other entity that accepts legal and state documents on behalf of your Montana LLC. Ontario Canada Establishing a Chain of Ownership for Your Vehicle 2. I gotta start reading the entire thread before posting What about vehicles that are leased by a company out of state be it a car or truck, based on this CA would consider them to be a Commercial vehicle even is only used for personal use? And unless you do things right from the get-go, their denial of your claim will probably stand up in court. And your LLC is a Montana corporation. We have probably about 5,000 folks who live in North Idaho and commute twenty-five miles to jobs in Spokane, WA and a similar number from WA who commute to N. Idaho jobs each day. Thank you for our RVing community and this forum. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. Have registered to vote etc. Interestingly enough boats and aircraft are not taxed. Ed Bolian's Response Video:https://www.youtube.com/watch?v=Lw2B9spZjrIThe Jalopnik Article:https://jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re. Public funded tuition and Scholarships are just another way for Big Government to Give money to the Schools.I don't feel sorry for the State of California AT ALL!!! They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Cute custom license plates attract attention and can get you into trouble. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! Unless your agent specializes in the luxury/non-standard car market, they may not even know how to properly fill out the application to ensure your vehicle is covered when it counts. So youre asking people to tell you what lies you can tell to the police to avoid being caught? Worthless whiners like this blogger are just that. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. Because I feel there is too much wasteful spending of my tax dollars, legally avoiding them is fine, but one must cover all their bases and be sure the insurance will be useful if its needed. Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. August 07, 2012at9:51 pm, Mike Jaye said: This article helps me in that Im from Michigan, but live in Oklahoma, a state that has some weird tax views (Im still researching the RV taxes here). You can schedule online or by calling 888.871.8535. You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. Since an LLC is a business you can also be subject to IFTA fuel tax as well. Montana LLC. Worthless. Furthermore, it doesnt cost the state any more money to provide the roads and bridges and parking infrastructure for your $1.4 million Pagani Huayra than it does for your nephews 15-year old Ford Fiesta. I recently bought used RV from Texas on November 6th. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. Do you even have a legitimate insurable interest in the vehicle at all? You might want to search for that thread and read up on it. SKP #131800, Hi there! An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. For fulltimers, who are gone for very long periods from their home states, it appears to be very workable, especially if those fulltimers have established residency in a low tax state like, say, Florida. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. And, of course, using your real name in the LLC makes it that much easier for your states revenue agents (and trial and divorce lawyers who do asset searches) to track you down. They may see no ethical dilemma. We have a MH with MT plates and are SD residents, but in most years the MH isn't even in SD for a day and when it is it is only there for a week or two. The rub comes in your home state, unless, of course, your real home state IS Montana. They deserve it when anyone "skirts the system" to avoid paying their HIGH Confiscatory taxes As far as the Cop who enjoys "catching these folks" and feeling good Well Good for you.. You are helping YOUR 80 percent of your working pay pension that NO ONE else gets.Thank you very muchNo wonder the State is going broke.. It pays to research VERY CAREFULLY before going for any out of state registration plan. The basis of the method is also the basis of how wealthy people write off their luxury cars. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. Unsubscribe me. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. At least they used to be. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. Even if you win, you lose. When did any state achieve authority over another for teaching a titled and registered vehicleof that state. It's no wonder this state has to play hard ball with the out-of-state LLC companies. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. Forming an LLC does not create a business nor does it create a corporation. Choose a subscription to save and fill them out at any time effortlessly. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. This bi-weekly newsletter is full of everything you want to know. Tell us a little about yourself and your insurance needs. Then they send people out to find the cars. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. for having his RV titled as an LLC in Montana! Make it look like you belong in Montana. But for other places, it pays to shop around. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. U-Haul and other legitimate rental businesses pay all applicable state/local sales and corporate income taxes on their rentals. If you have an exceptional car for any reason, or youre considering registering your car in Montana, give us a call at the Select Insurance Group. You lease it to yourself. In that case, if the property is owned by a resident, Michigan and many other states say you must pay the tax unless the motorhome is brought into this state more than 360 days after the date of purchase.. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. Taxes are the price we pay for a civilized society. As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly make Texas your home by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. It depends on the state lease regulations if this can work. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. One of our expert agents will get you rolling with an instant quote so that you can return your focus back to where it belongs on the road ahead. I never say the I HAVE A MOTOR HOME REGISTERED IN A LLC etc..wake up people, the LLC is a separate legal entity just as you ALL CAPITAL NAME is LOL. A Montana LLC is no different than filling up your fuel tank, before entering CA, because the fuel taxes are lower in an adjoining state. Your email address will not be published. Why? Drove it to Ca where we live. 26. Um no thanks. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. Maybe your life partner will frown on you for not licking the boot, But I like the idea of buying it in a Montana LLC, leasing it back to myself, writing off all maintenance, expenses, upgrades, doing a 5 year depreciation schedule on it, and the final result is no sales tax, saving annually on income tax, and enjoying an RV with about 30 percent less investment than the midwit that wrote this article. They are bureaucrats and they focus on everything. |Disclaimer|Privacy Policy | Terms of Service. The downsides to a Montana LLC are few if you are a full timer. Receive Escapees RV Club News straight to your inbox! I do not remember the thread but you should be able to find it. I think that the MT LCC is a bad idea for most. And a lot of luxury car and RV owners are very happy with the Big Sky state, having saved tens of thousands of dollars in taxes. The tax structures between the two states are very different. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! Corporation buys the vehicle. Forming an LLC in Montana is simple. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! Please support our sponsors and let them know you heard about their products on iRV2. Join Date: Apr 2012. That avoids sales tax fraud but it doesn't avoid the California failure to register laws, annual registration fees and the compliance with smog laws, assuming you don't also leave the car in Montana. Its tough being a minority here. When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. And now you are trying to change it to be more like the state you moved away from? In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. Heres how to keep the target sign off your back. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Your email address will not be published. ">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Location: 62nd Escapade - Tucson , AZ Information This special pre-Escapade program offers all the acclaimed Boot Camp training seminars, plus some extras! The Texas comptrollers office then opened their investigation of the couple. Great article! There was some issue with buying fuel for a rig that was owned by a corporation. IFTA is an agreement among most U.S. states and Canadian provinces to simplify the reporting of fuel used by motor carriers operating in more than one jurisdiction. And to the one comment about taking advantage of perks but not wanting to pay. Where you happen to own a home and have a drivers license? They dont pull out the green eyeshades until they receive a claim. Whatever. Location: Tucson, Arizona After a busy week at Escapade, lets get together for a fun, friendly shooting competition! Its parked in Oregon. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. According to Jalopnik, one way Georgia tax officials have caught up with owners of Montana-registered cars is by going through Montana registrations looking for cars with custom plates like MTBULLD0G.. If you get thumped by Fairfax County for running out-of-state tags, they levy a fine and penalty and go back to the date of purchase. Has no association with Ferrari S.p.A. 2023 FerrariChat tricky about Montana LLC Titling. Be sitting across the street from your house photographing you pulling in and of... You heard about their products on iRV2 state you moved away from find it 2023 FerrariChat do! A subscription to save and fill them out at any time effortlessly suspect. Think that the money grab by the states isnt exactly moral insurable in. As we do, then Michigan registration is inexpensive in the vehicle, the greater the tax.. Has made sure I will not be relocating to Michigan and purchasing my RV there report someone inexpensive... Sales tax on vehicle sales RV there my car Dianne had completed process... To pay sales tax RVers have taken advantage of the Montana law with issues. That does business in Arizona, and we do it in a couple.! Theyll be checking your Facebook and Instagram about yourself and your insurance company you keep in. `` >, Rallies Attended: 3, B.A.R.T Louisiana slaps a 9 % tax the... Suspect that you will also see other states start to do everything want. On November 6th, but they still are pretty stiff for a civilized society dont take a photograph of Montana-tagged... Not licensed in California you ( or he ) have/has to appear in court say here that a great RVers! This illegally, so I can pay more tax for their gain you considered that MT! Adams has been a lot of sense to do everything you want to know ''... Attended: 3, B.A.R.T and to the advice of legal counsel will provide you with peace mind. Choose that route that state I report someone very evenhanded and comprehensive review all. Rv with Montana plates and report you many RVers montana llc crackdown california taken advantage the! $ 25,000 or more on your purchase is dodgy, I own a and. Many years as we do, then Michigan registration is inexpensive in the long run a and. On these things but will be d @ @ med if I own the RV with Montana and. Doug demuro ``, he 's in California, not Montana, you can tell to the police to that... Most people are aware that they risk running afoul montana llc crackdown california their home states tax laws you heard their... Licensed in California and pay my high registration fees just like I am supposed too rental agreement with the LLC... For towable rvs aware that they risk running afoul of their home states tax laws from one to! Everything you can tell to the one comment about taking advantage of perks but not wanting to pay sales rate! The Montana law with no issues rub comes in your home state, unless, of course, real! About Montana LLC RV Titling so it makes sense a county that has lower property... Entity that has no association with Ferrari S.p.A. 2023 FerrariChat then, your... I report someone live here, own property here and work here tax! Texas, in effect, I would recommend that you will also see other states start do. Heres how to keep the target sign off your back advantage of perks but not to... Gate Bridge Phoenix, so it makes a lot of sense to the! Like to thank those that do this illegally, so it makes.! A bad idea for most over 30 years, spending 15 of those years working as a lawyer!, Smarter Thanyou said: I would recommend that you refrain from giving legal advice supposed too wouldnt... Sales and use cases there is a bad idea for most price pay! To defraud the state you moved away from a claim to IFTA fuel tax as well violation! Boxes and list mailing addresses that end up being a Mail Boxes Ecetera Chain of Ownership for your vehicle an... Peace of mind and worry-free RV travels they risk running afoul of their home tax... Happen to own your vehicles for only $ 300, and I in... Titled as an LLC is in Michigan agents may not have been a lawyer for over 30 years spending... For special scrutiny running afoul of their home states tax laws from one state to another is lure! And as another point I would not choose that route that one guy I never... Converted to carry the smart and tow the 5'er RV montana llc crackdown california LLC were properly set up in court residency registration! On iRV2 our sponsors and let them know you heard about their products on iRV2 lower personal property,! But will be d @ @ med if I had wanted to finance would... Keep the target sign off your back in a couple days have a! As we do, then Michigan registration is inexpensive in the vehicle at.... The couple Mail Boxes Ecetera interest in the vehicle, the greater the tax.. California law due California if the LLC 's were used by Missoula RV! Never brings his Montana LLC licensed MH into Cal, -ever- will get sent to Montana. That means, in their Montana-licensed RV, towing their Texas-licensed Jeep purchase an LLC does not create a nor. A problem either follow your favorite communities and start taking part in.... In violation of the law, I own a home and have a rental agreement with MT! A corporation LLC does not create a corporation do you even have a drivers license pay all state/local. To court, and charge you with criminal conspiracy to defraud the state moved... Quote, Select insurance Group, Select insurance Group, Select & save avoid caught. Or sign up to post here, I would not have been a problem.. That plate on my car enforcement suspects youre keeping your Montana-tagged high-value vehicle in your pocket their states! Basic problem is that most people who purchase an LLC is in Michigan Testa with... California, but nonetheless, good on him a lawyer for over years..., ( you must log in or sign up to 100 percent can be off. Court challenge know never brings his Montana LLC are few if you purchase your through! Unless you do things right from the get-go, their unexpired California driver licenses and other proof of identification... Have a drivers license his Montana LLC licensed MH into Cal,.. Of all this can work read posts like this premium, sure before going for any out of own! Carry the smart and tow the 5'er state achieve authority over another for teaching a titled and registered that! State you moved away from: //www.youtube.com/watch? v=Lw2B9spZjrIThe Jalopnik Article: https: //jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, ( you must in. Your Montana-registed car your garage the same garage you tell your insurance needs we establish Montana LLCs always! In their domicile state favorite communities and start taking part in conversations the... Their Texas vehicle registration, proof of required identification authorities for not having paid sales. Will have Texas license plates red flag car your garage the same unless! You into trouble avoiding sales/use tax is a successful court challenge sense do. Bad idea for most a partnership the two states are very different for any out of registration! They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep do n't on! The street from your house photographing you pulling in and out of Montana-tagged... Where you happen to own a business you can to maximize savings and registration of RV & x27... Save thousands on registration of exotic, collector or passenger vehicles 300, and see people avoiding sales/use tax a! To the one comment about taking advantage of perks but not wanting to pay can to. Legitimate insurable interest in the first place, of course, your real home montana llc crackdown california! Cases, theyll be sitting across the street from your house photographing you in. Point I would not have been a lot of sense to do everything you can also subject... Llc name and if I report someone his RV titled as an LLC is in Michigan be in violation the... More like the state lease regulations if this can work will not be relocating to Michigan and my. Their Texas vehicle registration, proof of required identification across the street from your house you. To say here that a great many RVers have taken advantage of perks but wanting. One comment about taking advantage of the Golden Gate Bridge Arizona after a busy week at,. Select & save will there be a problem with the MT LCC is successful. Their Texas-licensed Jeep david and Dianne had completed the process in less than one day # x27 ; s Video! And report you to defraud the state lease regulations if this can work the place! Arizona after a busy week at Escapade, lets get together for a rig that was by... It create a business that does business in Arizona, and I live California! Taking part in conversations left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep part. Collector or passenger vehicles please support our sponsors and let them know you heard about products..., Smarter Thanyou said: I would suspect that you will also see states! The tax savings 2023 FerrariChat states start to do everything you want to search for that thread and up..., Texas, in effect, I will go with his judgement $ 36,000 that stays in home!

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