Tax Matters

Tax Matters

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IRS Ruling

New car dealerships often entice potential buyers with a cash-back rebate on the purchase of a new car.  Perhaps you’ve wondered whether this income is taxable.  In the past, the IRS has unofficially stated that this income was merely a reduction of the purchase price and not included in income.  Now, they have issued a ruling specifically stating that rebates received on the purchase of a new vehicle are not taxable.

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