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

NTEA’s vehicle engineering and compliance resources provide solutions

NTEA’s technical services department is a vital resource for members. Staff engineers with more than 100 years of combined commercial vehicle industry experience provide in-depth solutions to technical questions and...

May 6, 2025

Excise Tax Enquirer

Further manufacturing of used chassis previously subject to FET

We want to add a piece of equipment (not a body) to a used truck chassis. The used chassis is older than six months and was taxable under Internal Revenue Code (IRC) Section 4051 Federal Excise Tax (FET) when new. The...

May 6, 2025

Federal Excise Tax (FET) Implications

Excise Tax Enquirer

Further manufacturing of used chassis previously subject to FET

May 6, 2025

Federal Excise Tax (FET) Implications

How a trade-in will affect your FET calculations

Recommended Articles

NTEA’s vehicle engineering and compliance resources provide solutions

Further manufacturing of used chassis previously subject to FET

Further manufacturing of used chassis previously subject to FET