How a trade-in will affect your FET calculations

July 5, 2018

Rose-Michele Nardi

Baker & Miller PLLC

We are selling a taxable truck, and the purchaser is paying a portion of the sales price with a trade-in vehicle. In negotiating the sale, we agreed to a trade-in allowance greater than the fair market value. How should we calculate Federal Excise Tax (FET) on the trade-in vehicle?

Federal Excise Tax (FET) Implications

Make NTEA your Association today and unlock access to exclusive resources, tools and insights.

Join online

Is FET triggered by adding snowplow equipment to a used, previously taxable chassis?

From an NTEA member Is FET triggered by adding snowplow equipment to a used, previously taxable chassis? Probably not. In determining whether the addition of snowplow equipment to a used chassis will trigger FET, you...

September 1, 2025

Tech Trends

Federal Excise Tax (FET) on parts and accessories

Some NTEA members have asked about Federal Excise Tax (FET) as related to parts and accessories rulings. As with most FET questions, solutions are vehicle-specific. The Internal Revenue Service breaks FET into specific...

September 1, 2025

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Considerations when adding a new, taxable body to a used chassis

If we install a new, taxable body on a used chassis that was taxable when it was new, does the addition of that body “further manufacture” the chassis, so that IRC Section 4051 FET is triggered on the chassis? Does it...

July 3, 2025

Federal Excise Tax (FET) Implications

How a trade-in will affect your FET calculations

Recommended Articles

Is FET triggered by adding snowplow equipment to a used, previously taxable chassis?

Federal Excise Tax (FET) on parts and accessories

Considerations when adding a new, taxable body to a used chassis