How do I claim a tax paid purchases resold deduction for motor vehicle fuel?
Often times a taxpayer may sell property that includes motor vehicle fuel as part of the sale (sale of vehicle with a full tank of gas, wet rental of equipment, etc.). If you purchase fuel tax paid and subsequently sell the fuel at retail along with the sale of other property, you are generally entitled to claim a “cost of tax paid purchases resold” deduction. The current tax return will not allow for calculating the tax paid purchases resold deduction at the partial tax rate applicable to motor vehicle fuel, only at the full tax rate. Therefore, if you have purchased motor vehicle fuel tax paid from another retailer and then subsequently sold the fuel at retail and wish to claim a tax paid purchases resold deduction, a special schedule will be required to accurately report the tax paid purchases resold deduction. You may create any schedule necessary to accurately report these transactions. If you are utilizing the BOE’s eFile program, the program is set up to calculate the tax paid p
