Cash rebates taxed?
Sorry if this is a long post, but couldn't really make it short. Went shopping for a new truck, and amazingly I found one that has pretty much everything I wanted, and very little that I didn't. ...
Forum Discussion
CarnationSailor wrote:winnietrey wrote:
I am no expert. But I feel it is possible the dealer is indeed correct. A google of FL law on car sale tax says this.
If you buy a car for say 10K, and are offered a 1k cash discount, so the price to you is 9k. You will however still pay tax on 10k. So the rebate is indeed taxed, at the local and state sales tax level.
So if they just sent you the 1k, you will still owe sales tax on it, what forms would be needed I have no idea, it may indeed require a 1099. But the State of FL is going to want their percent
Under your second scenario, the sales price on the contract would read "10k", and sales tax on the full 10k would be collected at the time of the sale. You would owe no further sales tax because receiving 1k back does not change the sales price - it remains 10k.
Again I am no expert, and I see your point, however having been in biz, for a long time, and paying our BO tax here in WA. I suspect proving that to the state of FL, would generate a lot of paper work on the part of the dealer, and also the buyer. That maybe why the dealer did not want to do it that way. Just a guess on my part
