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Showing posts with label selling. Show all posts
Showing posts with label selling. Show all posts

Thursday, November 17, 2016

Buying a New (To You) Semi-Truck

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Buying a New (To You) Semi-Truck
Buying a New (To You) Semi-Truck
Buying a new vehicle is a hassle. Whether you’re buying a sedan for the family, or that hot rod you’ve always dreamt of, you’re gonna face some kind of trouble.

But what about when you want to buy a new semi-truck?

Choosing Your Truck


Your first determination will be, do you want a new truck or a used truck? In order to figure that out, you need to think about what you will be doing with your truck. Unfortunately, new trucks run between $80,000 and $150,000. With all the bells and whistles out there, you could sit right near $200,000.

Of course, getting a new truck usually means you’re getting a warranty, too. That will offset costly repairs, at least!

If you’re running local freight and one day jobs, getting your hands on a used semi-truck could be a better option.

Whichever option you pursue, you need to figure out your margins and set a budget. This should not only include what you can afford to buy, but it should also factor in what your fuel, maintenance, and insurance costs will be with said truck.


Related Blog: HVUT Credits: Selling & Purchasing Vehicles

How Do You Pay For It?


That’s the most important question, isn’t it? There are basically two payment routes you can take when it comes to purchasing your truck - financing and outright purchasing.

We’ll have to break this down into two categories: Why you should seek out financing, and why you shouldn’t.

If you own a trucking business, some of the costs of the vehicle and the depreciation can be deducted from your taxes - make sure you keep detailed records. However, on the plus side, many loans don’t require an initial payment, so there’s

However, there are some disadvantages to financing your truck. First, if your loan payments are high, you’re gonna feel it in your wallet. On top of that, you’re still responsible for your own truck maintenance, including parts! Plus, the truck isn’t technically yours until you’re done paying it off.

After all of that, some financiers will only supply financing if you already own multiple trucks, making this harder for single truck owner-operators!

If You Go Used, Get Inspected


While buying a used truck might be the most affordable option for you, you need to make sure you’re not throwing money into a lemon.

So when you buy a used vehicle, make sure you get the truck thoroughly inspected.

While they may swear the truck works great, and you may know your way under the hood of a truck, getting an independent mechanic to inspect the vehicle can save you in the long run.

It might cost you around $100 now, but if it saves you thousands in repairs down the road, where’s the loss?

When you get an inspection, the key points you want to have examined are axle configuration, truck horsepower and capacity, engine condition, brake systems, cab condition, and the maintenance logs.

If all clears, you found yourself a good investment!

Once you have your new truck on the road, you’re going to need to e-file Form 2290. Head to ExpressTruckTax and sign up for a free account - you won’t have to pay until you transmit your heavy vehicle use tax!


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Wednesday, January 20, 2016

HVUT Credits: Selling & Purchasing Vehicles

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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 support@expresstrucktax.com.



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E-file your HVUT Form 2290 with ExpressTruckTax.