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Business & farm
It's complicated. For personal purchases, cashback is not taxable. It is treated as a discount of the merchant fee charged by the credit card and passed on to customers, and discounts, like coupons, are not taxable.
However, when used for business, what you basically have is a discount that reduces your cost of goods (your inventory cost). You should probably reduce your inventory cost by the amount of the rebate check (which will increase your net profit.) It is probably easier to report the check as income, which has the same result in the end.
However, when used for business, what you basically have is a discount that reduces your cost of goods (your inventory cost). You should probably reduce your inventory cost by the amount of the rebate check (which will increase your net profit.) It is probably easier to report the check as income, which has the same result in the end.
‎June 6, 2019
5:56 AM