Should I include a rebate with the amount paid with trade in?

For vehicle used in business

posted

The rebate reduces your cost basis for a rebate received with the purchase, or alternatively, increases your amount realized for a rebate received with a trade-in. If you received a rebate for the vehicle traded in, you should include this as the amount received for the vehicle. If it is a rebate for the new vehicle, it reduces the amount paid for the new asset.

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