Excise Tax Enquirer

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?
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