Just Wondering?

[BOB W]

How many of you remember to take a fuel tax credit for those clients that buy fuel for OFF-ROAD use?

[DaveO]

I take it mostly for farmers. Contractors with fork lifts, skid steers, tractors and welders can claim it as well if they can keep records.

[Bees Knees]

I take it for my contractors, but they never keep track of gallons. So I estimate it by taking the total dollar amount in that category and divide it by what I think is the average cost of fuel for the previous year. I suppose if it ever amounted to more than a couple hundred gallons, one should make them keep a log book. But I have never heard of a contractor who was able to keep those kinds or records before.

[Gretel]

I take it for my farmers. Montana has a tax refund as well, but more complicated to get than IRS.

[oceanlovin'ea]

Lawn maintenance

I guess I should take it for my lawn maintenance people also. He buys fuel for his equipment.

Oh, when my daugher gave me tickets yesterday for my son-in-law's second business, there was a ticket for $2 for gas. I asked her what that was for and she said it was for the pressure washer. I guess that would qualify for the fuel credit too.

That is one thing I don't think about. Better make a note to start checking.


Linda F

[BOB W]

Amending...

You can amend older returns (3 Yrs) and get the credit for each year.

[Unregistered]

Also

don't forget to claim any fuel refund credits as income in the year received.

[farm girl]

Could you

take it for fuel used for a charter fishing boat?

[BOB W]

Yes, if

the fuel had highway taxes included. Some diesel fuel can be bought without highway taxes included in it.

[farm girl]

The boat uses gasoline.

On the Form 4136 instructions under nontaxable use of gasoline:allowable uses - "a claim cannot be made for any use in a motorboat, other than commercial fishing". This boat is registered commercial.

Pub 378 - Off-Highway Business Use - "Do not consider any use in a boat as an off-highway business use." So, if not off-highway than the only thing left would be commercial fishing which states, " ... do not include boats used for both sport fishing and commercial fishing on the same trip." My feeling is that a charter boat would be sport fishing and therefor not eligilble fot the credit but the boat captain tells me "everyone else at the marina takes the credit". Am I looking at this the wrong way?

[BOB W]

Looks like.......

..... there may be a fine line, according to your note above, between sport and commericial fishing. I have always defined "Sport Fishing" as a personal activity and "Commercial Fishing" as a "for hire" or "for resale of the catch". But I see your point and a better definition of each needs to be made. Having said that, I have always taken the credit for "Party ( Charter) Boats", Clamers, and such.

I'll also see if I can find a better definition for you.

[BOB W]

I found this.....

......... which only explains the dilema.

New Bills or Re-filed Bills with No Prior Council Position

A07377A/S04169A (Weisenberg/Skelos) – Provide owners/operators of “for hire” fishing vessels the same business-related fuel tax exemption available to commercial fishing vessels

Councilor Robert Danielson noted that the bill's language is specific to vessels providing "charter" sport fishing services; technically, this would exclude partyboats sailing on a scheduled, excursion basis. Councilor Chris Squeri stated that he believed it was the sponsor's intent that the bill cover partyboats as well as true charter boats. Councilor John Davi, Jr. observed that a fuel tax rebate is given to commercial fishing vessels by dint of the fact that they are engaged in a food-producing activity; in his view, the same could not be as accurately said for the "for hire" fishing sector. Although Councilor Joe McBride, who operates a charter vessel, was not present, he had previously asked that his support of this bill be noted in the minutes of the meeting. Chairman Wise and Gordon Colvin, Director of Marine Resources for DEC, both noted that the language of the bill was vague as to who would qualify for its provisions, as a "commercial sport fishing vessel." As all "for hire" vessels plying the State's marine waters must have a valid DEC-issued charter/partyboat operator's license, they suggested that a reference to possession of said license would solve this problemCouncilor Danielson made a motion that the Council support A07377A/S04169A with the proviso that its language be tweaked to more clearly define to which vessels it would apply. Mr. Danielson's motion was adopted by a vote of 12 in favor; 0 opposed; 1 abstention.

[farm girl]

Thank you for your help.

Have you ever been questioned about taking the fuel tax for the charter boats? May I ask where you got the information on the council position - is it recent?

I'm still not 100% sure which way to go. My gut feeling is that credits and tax breaks are given to the production of food and not to the service of providing food, i.e. farmers but not farm stands, but I see what you mean about business vs personal activity.

[BOB W]

here is the...

.....web page...........

http://www.msrc.sunysb.edu/mrac/pages/Bv15n3s02.html

Based on your findings, currently there is no posistion allowing a credit for "For Hire" type fishing. Appearently the tax credits are being taken with no adverse action by the IRS. That is not to say there couldn't be down the road.

Whether or not the accountant explained to their clients of the risk envolved with taking the credit (disallowance) is unknown. They are probably just as unaware as I was with the credit having limitation when it comes to "business run" sportfishing or charter boats. To me it was just off-road taxes that was included in the purchase of the fuel and being used in a business off road..

When it comes to diesel fuel, there are 2 types of fuel, dyed and undyed. One has taxes included and the other does not. So appearently there is a choice that can be made at the time of purchase, but more than likely the purchaser needs to qualify to the seller their status. I don't know too much more in this area, buying diesel fuel.

[Donanita]

Also

School bus & transit buses get the credit