Code of Federal Regulations · Section

§ 48.4062(b)-1 — (b)-1 Rebuilt Parts Or Accessories Sold On An Exchange Basis

26 C.F.R. § 48.4062(b)-1

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The sale price of a rebuilt part or accessory on which the tax is to be computed shall not include the value of a like part or accessory accepted in exchange. The total amount charged in excess of the amount allowed for a like article accepted in an exchange will be the basis for tax. For example, if a rebuilt automobile engine is sold for $100, plus another automobile engine, the tax on the rebuilt engine will be computed on the basis of $100.