ExpressTruckTax Blog

Showing posts with label applying a credit. Show all posts
Showing posts with label applying a credit. Show all posts

Wednesday, January 20, 2016

HVUT Credits: Selling & Purchasing Vehicles

We’re a few weeks into 2016, and by this point you might have grown your fleet with a used (or new to you) truck. Or maybe you’re an Owner-Operator who is replacing an old vehicle. I mean, it looks like some sleeper trucks are just getting cheaper and cheaper. While you’re excited to be on the road in the new rig, it’s vital that you have your HVUT accounted for. With ExpressTruckTax, adding a credit for sold vehicles to your 2290 is easy.

How Do HVUT Credits Work?

When a vehicle is purchased from another owner who already paid their HVUT fees, the vehicle is covered until the end of the month of purchase. From the first day of the following month, it’s up to the new owner to pay the vehicle’s HVUT from the first day of that month to the end of the tax year.

With that said, it’s important to understand that the heavy vehicle use taxes DO NOT transfer from one owner to another. You’re required to file a Form 2290 and pay taxes on any qualifying taxable vehicle. The taxes also don’t transfer from your old vehicle to your new one! So if you sold your old truck after buying a new one, it’s the same process (just with the roles reversed). It’s annoying, sure, but you still have to do it.

Basically, the seller gets credited for the taxes they paid before they sold the vehicle, and the buyer owes the difference. And if you’re a seller, there are two ways to approach the credit. You can get the credit for the tax paid on your next Form 2290 filed or the refund can be claimed through Form 8849, if you don’t want to wait until the tax period ends.

Why don’t we just see how it’s done real quick?

What Are the Tax Implications When Buying or Selling a Suspended Vehicle?

Well, suspended vehicles come with a specific set of tax implications regarding their sale. If you sell a vehicle under suspension, you need to provide the following information:

  • Your name, address, and EIN,
  • VIN Number,
  • Date of the sale,
  • Odometer reading at the beginning of the period,
  • Odometer reading at the time of sale, and
  • Buyer's name, address, and EIN.

If everything is reported like above and the use of the vehicle exceeds the mileage use limit for the period after the purchase (including highway mileage recorded by the former owner), the new owner would be liable for the tax on the vehicle. If the former owner didn’t provide the required statement to the new owner, then the former owner would be held liable for that tax period.

With your new rig ready for the road, you can get back out there to the long haul. Don’t forget, after you pay your HVUT for this tax period, you’ll still be liable to pay for the new period that starts July 1st, 2016!

If you run into any questions about credits on ExpressTruckTax, our US-based bilingual support team is available through phone, email, and even live chat. Reach us by phone at 704.234.6005, or by email at

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Wednesday, May 28, 2014

How It Works: Applying A 2290 Credit To A New Truck

Have you had a taxable vehicle that was sold, destroyed, or stolen before June 1 of the current tax year? It happens, but hey you just keep on truckin' and get a new truck, but do you know how to claim a credit for your sold/destroyed/stolen truck and apply it to a 2290 HVUT for your new truck?

applying 2290 credit

Believe it or not, it is a really simple process. You can e-file your 2290 for your new truck and apply a credit from your sold/destroyed/stolen truck all at the same time. Let's go over how the process works in

First make sure you have the information needed for the new truck: VIN and vehicle gross weight. For your sold/destroyed/stolen truck you will need:
  • date of sale (or when it was taken out of service)
  • first used month & year of the 2290 return when you paid the taxes for this truck 
  • VIN
  • taxable gross weight 
If you don't have an account with ExpressTruckTax, that's not a problem, you can create an account now.
Once you are logged in and on the dashboard page, select "Start New Return". Choose the option on the left for Form 2290. Then follow the prompts to enter you new truck as a taxable vehicle.

NOTE: If the truck will be traveling less than 5,000 in one year (or less than 7,500 for agricultural trucks) you will enter your new truck information under "Suspended Vehicles".

After you have entered your new truck information, you will click on "Next" in the bottom right corner until you hit the Sold/Destroyed Credits page. On this page you will enter the information for your truck that was sold/destroyed/stolen.

Once you click on "Save", you will see the applied credit on the right side of the screen (under Total Credits). Then you simply proceed through the final steps of the e-filing process to transmit your return to the IRS.

If you need any help when e-filing your 2290, please do not hesitate give us a call. You can reach the ExpressTruckTax Team via phone: 704-234-6005 or 24/7 email:

Oh before I forget, the 2nd Quarter IFTA deadline is coming up July 31st, and if you don't want to deal with the hassle of IFTA filing, we have a great sister company - TSNA - that can take care of everything for you. They do everything from obtaining authorities, fuel/use taxes, permits, registrations, business start up services, and everything in-between. You can contact TSNA via phone: 803-386-0320 or email:

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ExpressTruckTax Blog

E-file your HVUT Form 2290 with ExpressTruckTax.