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off road on/ road fuel

M

mmidlam

Member
I just bought a 1984 diesel car. Is there a way to legally use one tank of fuel for both the tractors and car? Maybe keep track of the fuel used in the car and then pay the Taxes Or maybe buy on road fuel and record how much is used for the tractors and apply for a tax refund.
 
I don't know if either way is legal, but the second idea sounds like it might be. The easiest would probably be to just get fuel in the car at the fill 'em up station.
 
I wouldnt. Not even close to been worthwhile for all the problems you will end up with. You DO NOT want to have off road diesel in your vehicle and get caught.
 
I do know of one large farm that uses clear fuel in everything and keeps track of what goes in the off-road eqipment for a tax refund. That way they eliminate the chance of accidentally getting red in an on-road truck or pickup. Here in Iowa that's the only way we can do it with farm gasoline, that I know of. Jim
 
(quoted from post at 09:06:40 06/10/11) I just bought a 1984 diesel car. Is there a way to legally use one tank of fuel for both the tractors and car? Maybe keep track of the fuel used in the car and then pay the Taxes Or maybe buy on road fuel and record how much is used for the tractors and apply for a tax refund.
Click to expand...
ere in NH you have to pay road tax on off road fuel when you get it delivered, then download a form and send in for your rebate. All you have to do is list the equipment (tractors, skidders, whatever) that you use the off road in.
 
Here in CA we can usually buy diesel for less at the stations if you deduct the road tax. I have been buying all my diesel there. They charge almost as much for red diesel. The federal tax is easy to get back, the state is more complicated. Farmers are supposed to buy red diesel but others can apply for refund.

For that "84 car I would add a qt of oil to that low sulfer diesel to 10 gallons to lube the pump even if you run red diesel.
 
Two suggestions...and I WOULD DO both.

#1...See what your accountant has to say about "how" you keep records for that.

#2...Check with your state fuel tax people about the advisability of such AND "how" you keep records for that. (same questions you asked your accountant...would be interesting to see what...if any...differences there might be).

I'm betting that IF you can do this, you'll be advised to "apply for the refund"

Rick
 
Like every question on here- location is always a factor.
In NY you can register as a farmer to buy off road fuel(red) tax free.
On road fuel, like gasoline, must have all taxes paid at purchase. And like gasoline, you can file for a refund of taxes based on records of how you used it.
Then any refund you get, that you shouldn't have had to pay in the first place, automatically becomes TAXABLE INCOME!
 
Sure, just use taxed fuel for both the car and the tractors. You may be able to get some tax refunded.

You DON'T want to use untaxed farm diesel in a car you use on the road--if they happen to catch you with red diesel in the tank, it is a huge fine. It's just not worth the risk!
 
Rumored to have been done by customer at dealership I used to work for in Illinois- home delivery of heating oil, no road tax and no dye added. Fill up diesel car and tractor from same "heating oil" tank. I sold customer the extra fuel filter kit and case of diesel injector lube and clean. A truck stop was caught selling the non taxed "heating oil" mixed in on road pumps- this was first OPEC hold back when stations were rationed to 80% of previous years product sales unless a lot of paperwork done. might check on price and availability of "heating oil" in area and possible no dyed stock delivery. A couple furnaces at the time were known to say dyed oil would partially clog burner and result in carbon monoxide - manufacturer said any state that had dyed fuel requirement that resulted in death would be sued by there insurance company for making the hazard situation so dye not required in most states- Massachusetts was noted as possible exception. RN
 
Use whatever you want,they don't check cars.Most diesel cars don't even have a diesel emblem.Every farmer i know runs farm fuel in there diesel pickups.
 
"Then any refund you get, that you shouldn't have had to pay in the first place, automatically becomes TAXABLE INCOME!"

Yep. One of the things that ticks me off every year at tax time is getting the form from the state to pay income taxes on the state income tax refund from the year before.
 
If you have a fleet of diesel trucks and one is caught with red fuel the DOT will be checking all of your trucks. It's not worth the risk. Here in my part of Iowa the DOT checks pickups fairly regularly. Jim
 
in alberta if you burn on road fuel off road and keep track of everything you can get a rebate but it is a lot of paper work
 
Last I knew it was $10K fine for every registered vehicle on the road running off highway fuel + the amount of road use tax based on the fuel capacity of the vehicle in Iowa. I have heard some other states take a nice big wet bite out of your backside, then turn you over to the IRS for tax evasion. Anybody who runs red fuel on the road is playing with fire...
 
(quoted from post at 16:02:15 06/10/11) "Then any refund you get, that you shouldn't have had to pay in the first place, automatically becomes TAXABLE INCOME!"

Yep. One of the things that ticks me off every year at tax time is getting the form from the state to pay income taxes on the state income tax refund from the year before.
Click to expand...

But you have already claimed the taxes as an expense! Having to declare the refund as taxable income only puts you back where you started, just a year later.
 
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