A cash rebate you receive from a dealer or manufacturer of an item that you buy is not
taxable income on your tax return. However, you should reduce any applicable tax deductible amount by the amount of
the rebate on your tax return.
You should reduce your
tax basis used to figure
taxable gain or loss on your tax return upon sale or
exchange, or depreciation, on property used in a trade or business or in an activity for
the production of income by the amount of the cash rebate.
IRS publications about a rebate: For further tax information about a rebate see
IRS Publication 17,Your Federal Income Tax.
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For further information regarding IRS
rules and regulations and your particular tax or IRS situation you should
consult with a Certified Public Accountant, Enrolled Agent, Attorney, or
other tax advisor.
Your Federal Income Tax.
