I have and will talk a lot about suspended vehicles and that’s because they can be really tricky. Whenever the IRS opens a window to help people save money on their taxes, you can be sure they probably slammed a door somewhere too! In this article, I just want to clarify a part of the Form 2290 Instructions that I had to read a few times before I understood.
Total Mileage
Earlier in the week, we talked about SELLING suspended vehicles, and the statement that the seller needs to provide to the buyer. Remember – the 5,000 mile limit applies to the truck for the whole period, not just your time of ownership.
But it gets even trickier if you keep reading the instructions. As long as the seller provided the statement we discussed last time to the buyer, when the mileage limit is exceeded the new owner is responsible for the whole tax.
Protect Yourself
Even if the miles aren’t yours, you can still be held responsible to file and pay the tax. Whenever you buy a used truck, make sure you get a copy of the old Form 2290 so you KNOW how the taxes were filed and paid. Make sure you get the odometer statement we discussed before so you KNOW what the mileage is. And that way – you’ll KNOW what you’re getting into.