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
tinstartrvlr wrote:
Dang I can't wait to find out the answer to this one. It just seems really sleazy somehow but I won't judge until I know for sure.
So another thought in this whole mystery, how come we don't get a 1099 and pay taxes on that $100 manufacturer rebate we got for buying that big screen TV, or whatever else we might get a rebate on?
Just sayin....
Because that is between the customer and the manufacture, the store is out of the loop.
In your case you would be basically, assigning your rebate to the dealer. Lets say it is 1K, that 1K is going to show up on the dealers books as income. They will have to pay federal tax on that 1k, which they do not want to do or should they have to.
So the dealer must have a way to say that 1k went right back out the door, so it is zero sum to them.
I am not a CPA or car dealer, but I have dealt with 1099's for years, And I think that is the case here, they have to offset the income from your rebate somehow
The question in my mind is this? Does the dealer really need to do a 1099, to account for this? or is there some other accounting method which dealers use? For this situation, I do not know.
But as toadtoes said, and I tried to, it is not about you, I suspect it is all about dealer paperwork,
Does not make them crooks, it just maybe their accounting system,
