Is installation labor cost FET excludable?

March 8, 2022

Rose-Michele Nardi

Baker & Miller PLLC

In connection with our sale of a new body that’s subject to Internal Revenue Code Section 4051 FET, our customer requests that we install the body on a customer-owned chassis. It has been less than six months since the chassis first was placed in service. Can we exclude from FET the portion of the sale price attributable to the installation costs?

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