Rebates are not considered taxable income.  A recent IRS ruling which states that a rebate we provide you will not be considered income, but rather a lowering of the purchase price:

The IRS determined in Ltr. Rul. 200721013 that certain commissions received by real estate brokers that were passed along to their home-buying clients were neither reportable payments to the brokers nor gross income to the clients.

Source: RIA/WGL Journal of Taxation (preview) on Checkpoint

This entry was posted on Wednesday, July 18th, 2007 at 12:38 pm and is filed under How Rebates Work, Blogroll. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.