Treasury Regulations · 26 CFR
§ 48.4218-3. Events subsequent to taxable use of article.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 4218
Cite as 26 CFR § 48.4218-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- November 5, 1963 by T.D. 6687
- Issued under
- 26 U.S.C. § 4218
- Length
- 98 words · about 1 min to read
Liability for tax incurred on the use of an article is not extinguished or reduced because of any subsequent sale or lease of the article even if such sale or lease would have been exempt if the article had been so sold or leased prior to use. If a manufacturer, producer, or importer of an article incurs liability for tax on his use thereof, and thereafter sells or leases the article in a transaction which otherwise would be subject to tax, liability for tax is not incurred on such sale or lease.
[T.D. 6687, 28 FR 11781, Nov. 5, 1963]
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 6687 (28 FR 11781)
Where it sits in 26 CFR
- Subchapter D Miscellaneous excise taxes
- Part 48 Manufacturers and retailers excise taxes
- Subpart M Special Provisions Applicable to Manufacturers Taxes
- Use by Manufacturer or Importer Considered Sale
Nearby sections
- § 48.4218-1 Tax on use by manufacturer, producer, or importer.
- § 48.4218-2 Business or personal use of articles.
- § 48.4218-3 Events subsequent to taxable use of article.
- § 48.4218-4 Use in further manufacture.
- § 48.4218-5 Computation of tax.