Is a buyer rebate taxable?

BUYER REBATES ARE NOT CLASSIFIED AS INCOME BY THE IRS

A buyer rebate is not classified as income, and a Form-1099 will not be issued. A similar example is the rebates you receive on a cashback credit card. The points and cash rebates that you redeem on these credit cards are not reported to tax agencies.

You may apply the buyer rebate towards your closing cost as a credit.

Refer to the IRS document regarding commission rebates for additional information.

A payment or credit at closing from Taxpayer represents an adjustment to the purchase price of the home and generally is not includible in a purchaser’s gross income.

CONSULT WITH A TAX PROFESSIONAL

In addition, please consult with a tax professional concerning the tax implications of receiving a buyer rebate.