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Posted by jack on September 22, 2008, 10:54 am
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Microsoft ran a rather odd program where they would issue you a rebate of
25% for anything bought on "buy it now" ebay, and paid for with Paypall.
I took full advanage of it and I (well, me, my wife and son) are getting
about $1,000 in rebates.
Is it income, or simply a reduction in what I paid for the stuff.
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Posted by joe taxpayer on September 22, 2008, 12:15 pm
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jack wrote:
> Microsoft ran a rather odd program where they would issue you a rebate of
> 25% for anything bought on "buy it now" ebay, and paid for with Paypall.
>
> I took full advanage of it and I (well, me, my wife and son) are getting
> about $1,000 in rebates.
>
> Is it income, or simply a reduction in what I paid for the stuff.
The way this is treated is the same as a discount. When you deposit
funds at a bank to get a free iPod, the value is part of income, as
interest on the account would be. But as you suggest, this refund is
just a cost reduction.
Joe
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Rick on September 22, 2008, 3:12 pm
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> jack wrote:
>> Microsoft ran a rather odd program where they would issue you a rebate
>> of 25% for anything bought on "buy it now" ebay, and paid for with
>> Paypall.
>>
>> I took full advanage of it and I (well, me, my wife and son) are getting
>> about $1,000 in rebates.
>>
>> Is it income, or simply a reduction in what I paid for the stuff.
>
> The way this is treated is the same as a discount. When you deposit funds
> at a bank to get a free iPod, the value is part of income, as interest on
> the account would be. But as you suggest, this refund is just a cost
> reduction.
>
> Joe
>
> --
What about a situation where a pharmacy offers a $25 gift card if you
transfer a prescription from another pharmacy. For example, I can transfer
a prescription from another pharmacy that would normally cost, say, $10. I
still have to pay the $10 to the new pharmacy, but the pharmacy then gives
me a free $25 gift card to use on a future purchase. The question I have is
can I still deduct the $10 cost of the prescription as a medical expense and
do I have to report the $25 gift card as income?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Paul Thomas, CPA on September 22, 2008, 3:51 pm
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> What about a situation where a pharmacy offers a $25 gift card if you
> transfer a prescription from another pharmacy. For example, I can
> transfer a prescription from another pharmacy that would normally cost,
> say, $10. I still have to pay the $10 to the new pharmacy, but the
> pharmacy then gives me a free $25 gift card to use on a future purchase.
> The question I have is can I still deduct the $10 cost of the prescription
> as a medical expense and do I have to report the $25 gift card as income?
That sounds like income. This is based on the gift card being accepted
off-site at a competitor store, for groceries, or beer.
I might think differently is it's an in-store card, as that would be a
discount off future business with them. Just like those places where you
buy 12 subs and get the 13th sub for free.
--
Paul A. Thomas, CPA
Watkinsville, Georgia
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Rick on September 23, 2008, 9:31 am
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>
>> What about a situation where a pharmacy offers a $25 gift card if you
>> transfer a prescription from another pharmacy. For example, I can
>> transfer a prescription from another pharmacy that would normally cost,
>> say, $10. I still have to pay the $10 to the new pharmacy, but the
>> pharmacy then gives me a free $25 gift card to use on a future purchase.
>> The question I have is can I still deduct the $10 cost of the
>> prescription as a medical expense and do I have to report the $25 gift
>> card as income?
>
>
>
> That sounds like income. This is based on the gift card being accepted
> off-site at a competitor store, for groceries, or beer.
>
> I might think differently is it's an in-store card, as that would be a
> discount off future business with them. Just like those places where you
> buy 12 subs and get the 13th sub for free.
>
>
>
>
In this case, it's an in-store gift card that can only be used at the
pharmacy (though oddly it can't be used on prescriptions)...
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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