Owner vs. modifier: FET liability when non-taxable chassis is converted to taxable

May 3, 2019
Rose-Michele Nardi
Baker & Miller PLLC
We purchased a non-taxable truck chassis. Prior to reselling the vehicle, we plan to have an unrelated entity perform slight modifications to it. Assuming the modifications convert the original chassis into a taxable one, are we or the modifier responsible for the tax under Internal Revenue Code (IRC) 4051? Is the tax limited to the cost of the modifications?
THIS CONTENT REQUIRES NTEA MEMBERSHIP
Sign in for access
Not a member?
Make NTEA your Association today and unlock access to exclusive resources, tools and insights.
Join online

Recommended Articles