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Posted by Cardinal24 on June 24, 2006, 2:38 pm
Please log in for more thread options KJ Nichols, CPA wrote:
> Cardinal24 wrote:
>> I guess I could just declare it as income, but that doesn't
>> feel right. I didn't earn it by programming (my job).
>>
>> When I get rebates, I just reduce the deduction by the
>> amount of the rebate. For example, if I buy a printer for
>> 120.00 and get a rebate of 30.00, I claim an expense of
>> 90.00.
>>
>> I don't know how to deal with these Cash Back Rewards
>> Checks.
>>
>> Any suggestions please?
> You should seperate the transactions. Book the expense or
> asset at the original cost and treat the rebate as
> miscellaneous income.
>
> That is assuming you are not mixing personal & business
> expenditures on the same credit card.
>
> In your printer example, you should have booked 120.00 to
> fixed assets and depreciated it or used Section 179 to
> deduct the cost and included the 30.00 in income.
I do not want a rebate, from a purchase to artificially
'boost' my income. Accordingly, I prefer, to reduce the
expense/deduction, by the rebate amount. I document this
very explicitly on my deductions spreadsheet. Of course,
I don't know much about accounting. If this treatment is
illegal, or just plain WRONG, I can adjust my behavior.
Can I continue as I have been?
Thank you,
cardinal24
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