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
delwhjr wrote:
Directly from IRS Publication 525- Taxable and Non-Taxable Income:
"Cash rebates. A cash rebate you receive from a dealer or manufacturer of an item you buy isn't income, but you must reduce your basis by the amount of the rebate.
Example.
You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. The $2,000 isn't income to you. Your basis in the car is $22,000. This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business."
Rebates are not taxable ,therefore no 1099 is required or needed.
The difference between your trade in and your purchase only applies to sales tax. You only pay sales tax on the difference; since you already paid the sales tax on the trade-in when you bought it.
This dealer is totally off base.
please stop trying to put true/facts into this thread.
thanks for your support.
bumpy
