jackbean Posted July 25, 2005 Share Posted July 25, 2005 i am buying a new gmc truck it comes with a 3,000 rebate . do i have to pay the sales tax on that or is the dealer required to claim that ?? thank you john Quote Link to comment Share on other sites More sharing options...
jackbean Posted July 25, 2005 Author Share Posted July 25, 2005 i forgot to mention you guys here seem to be a crew of knowladgeable fellows here that's why i inquired thanks again, john Quote Link to comment Share on other sites More sharing options...
skonopa Posted July 25, 2005 Share Posted July 25, 2005 ---------------- On 7/25/2005 8:13:14 PM jackbean wrote: i am buying a new gmc truck it comes with a 3,000 rebate . do i have to pay the sales tax on that or is the dealer required to claim that ?? thank you john ---------------- When I bought my new car this past spring, it came with a 2,000 rebate. I still had to pay sales tax (despite me and my father trying to talk them out of it). The catch is that it is a rebate, not a discount (although from the buyer's point of view, whats the difference?)! The best analogy is when I bought an 80-gig harddrive. It was advertised at $20, but in reality, it was $90, with $70 in rebates. Of course, when I bought it at the register, I paid the full $90 (and sales tax on that), and then collected the $70 worth of rebates (I friggan hate mail-in rebates! After all, why the hell does it have to take nearly 2 months to get it back? What? They only got one person to process those? Just give me the damn discount at the register!). At least in the case of the auto dealership, they deduct the amount right there. Quote Link to comment Share on other sites More sharing options...
johnyholiday Posted July 25, 2005 Share Posted July 25, 2005 your suppose to report the 3k ,as income to the IRS,but i wouldn't Quote Link to comment Share on other sites More sharing options...
cmdridq Posted July 25, 2005 Share Posted July 25, 2005 "Of course, when I bought it at the register, I paid the full $90 (and sales tax on that), and then collected the $70 worth of rebates (I friggan hate mail-in rebates! After all, why the hell does it have to take nearly 2 months to get it back? What? They only got one person to process those? Just give me the damn discount at the register!)." Skonopa, that's the whole point of those stupid mail-in rebates. The companies make most of their money from the people who forget to mail them in, lose the receipt, etc. I won't buy anything anymore with a mail-in rebate, not worth the hassle. Like you say, if they want to give you a sale price, then deduct it at the cash register. Many of them send out rebate checks that are only good for 30 days, etc., so many people lose out by not depositing them before the deadline. It's a big scam. Quote Link to comment Share on other sites More sharing options...
Malcolm Posted July 26, 2005 Share Posted July 26, 2005 Don't know what state you are in, but in California, the Board of Equalization (great name for a tax agency) requires sales tax to be paid on the price before the rebate. The seller gets part of the money from you, and part from the manufacturer. The seller is obligated to pay sales tax on the total received. But they are allowed, and are in all likelihood going, to pass the tax on to you. Some kinds of rebates are apparently taxable. But I think a rebate on a vehicle just reduces your basis and is not taxable both at the state and federal levels. See IRS pub 525. OTOH it has been many, many years since I took the CPA exam so you might want to check with your tax guy. Quote Link to comment Share on other sites More sharing options...
Big Ears Posted July 26, 2005 Share Posted July 26, 2005 I checked out GM's rebate deal last month. I was looking at a Yukon. They told me I could have the 3K rebate or 0% financing (not both), which when financed at 4.5 on a 48 month loan worked out to about the same 3K as the rebate. The whole "Employee Discount" is just another way to get you in the door. I decided wait on the Yukon and let gas go up antoher buck a gallon , then they'll be ready to deal. Quote Link to comment Share on other sites More sharing options...
Guest Anonymous Posted July 26, 2005 Share Posted July 26, 2005 ---------------- On 7/26/2005 12:38:59 AM Malcolm wrote: .............., but in California, the Board of Equalization (great name for a tax agency) ....................... ---------------- That name is so sad; "Board of Equalization" must make you Californians feel so much better being taxed. What a joke! Quote Link to comment Share on other sites More sharing options...
gullahisland Posted July 26, 2005 Share Posted July 26, 2005 ---------------- On 7/26/2005 12:38:59 AM Malcolm wrote: .............., but in California, the Board of Equalization (great name for a tax agency) ....................... ---------------- It's quite appropriate, actually. They take from the rich and give to the poor, disenfranchised illegal aliens. Ain't diversity grand? Quote Link to comment Share on other sites More sharing options...
scott0527 Posted July 26, 2005 Share Posted July 26, 2005 ---------------- On 7/26/2005 1:21:47 AM Big Ears wrote: I checked out GM's rebate deal last month. I was looking at a Yukon. They told me I could have the 3K rebate or 0% financing (not both), which when financed at 4.5 on a 48 month loan worked out to about the same 3K as the rebate. The whole "Employee Discount" is just another way to get you in the door. I decided wait on the Yukon and let gas go up antoher buck a gallon , then they'll be ready to deal. ---------------- I don't know about that, the Yukon I just bought listed for $44K, Employee discount was about $7800, and the rebate was $3000. I walked out of there for around 33K which is less than I paid for my similarly equipped new Tahoe(same car, Chevy nameplate) in 1999. Unfortunately, it has 9 Bose speakers scattered throughout the damn thing I don't pay much attention to car pricing year round but the deals right now seem to be more than the usual "Blowout" sales you see every other week throughout the year. Quote Link to comment Share on other sites More sharing options...
Colin Posted July 26, 2005 Share Posted July 26, 2005 rebate is NOT taxable income!!! - it is adjusted sales price - declare the vehicle tax and use the final paid amount as actual value Quote Link to comment Share on other sites More sharing options...
Colin Posted July 26, 2005 Share Posted July 26, 2005 ALG is pleased to announce the release of the ALG Depreciation Ratings. Based on 2005 model year vehicles, the 1 through 5 star ALG ratings provide consumers with an accurate and convenient method to determine the amount of depreciation a vehicle will experience over the lifetime of ownership. ALG Depreciation Ratings will be featured on Edmunds.com. http://www.alg.com/deprratings.aspx Eligible vehicles Here are the 38 light truck models that qualify for an extra $24,000 accelerated depreciation tax break: BMW X5 Cadillac Escalade Chevy Astro Chevy Avalanche Chevy Express Chevy Silverado Chevy Suburban Chevy Tahoe Dodge Durango Dodge Ram Van Dodge Ram Maxi Van Dodge Ram Wagon Dodge Ram 1500 Dodge Ram 2500 Dodge Ram 3500 Ford Excursion Ford Expedition Ford Econoline E-150 Ford Econoline E-250 Ford Econoline E-350 Ford F-150 Ford F-250 Ford F-350 GMC Yukon GMC Safari GMC Savana GMC Sierra GMC Sierra Denali Land Rover Discovery Land Rover Range Rover Lincoln Blackwood Lincoln Navigator Mercedes ML 320 Mercedes ML 500 Mercedes ML55 AMG Toyota Land Cruiser Toyota Sequoia Toyota Tundra http://www.detnews.com/2002/autosinsider/0212/18/c01-38875.htm Quote Link to comment Share on other sites More sharing options...
T2K Posted July 26, 2005 Share Posted July 26, 2005 I got a laugh when Ford came out with the Expedition. They announced it as a vehicle that they stood to make $15,000 a pop on. Bragged about it on the tube even. People lined up and bought the heck out of them. Me, I'm still driving my 1994 Chevy with 73,000 miles. Just 7 more payments and I'll have it paid for. Keith Quote Link to comment Share on other sites More sharing options...
skonopa Posted July 27, 2005 Share Posted July 27, 2005 ---------------- On 7/26/2005 1:21:47 AM Big Ears wrote: I checked out GM's rebate deal last month. I was looking at a Yukon. They told me I could have the 3K rebate or 0% financing (not both), which when financed at 4.5 on a 48 month loan worked out to about the same 3K as the rebate. The whole "Employee Discount" is just another way to get you in the door. I decided wait on the Yukon and let gas go up antoher buck a gallon , then they'll be ready to deal. ---------------- That was the case here when I bought my car this past March. I could've taken the rebates for the 0% financing. With the amount of money I was putting down (by the time all said and done, it was $7,000 down), I would've came out ahead taking the rebate and the 4.04% financing on the amount left over. That was a story right there. Those dealerships would rather you take thier financing. When it came to the final numbers, the "finance officer" showed me a loan at 5.4%. Oh, you should've seen the sweat beading on his forehead when I told him I was already pre-approved at my credit union at 3.9% (which was true). He started digging through his documents to see if he could match that! The best he could do was come up with 4.04%. My father was with me and he pretty much told me that for the .14% difference, just take it and be done. It would've only made a difference of about $30 over the life of the loan. Just need to pay ahead a few payments and that would take care of that. Thus, as an aside, shop around and if possible, try to get pre-approved for something! Will give you a big bargaining chip. If I had not done that, I probably would've taken the 5.4% and not think anything of it (since my old loan on my previous car was something like 8% - had the thing paid for, until it got hit! Oh well, at least the insurance settlement was way more than I would've gotten on trade-in, plus I do now have a nice, shiney new vehicle that I paid practically peanuts for ($11,000 financed)) Of course, if you are fortunate enough to have the money to buy the thing in cash, all that would be moot anyway. Quote Link to comment Share on other sites More sharing options...
SteelerFan Posted July 28, 2005 Share Posted July 28, 2005 ---------------- On 7/25/2005 11:54:08 PM cmdridq wrote: "Of course, when I bought it at the register, I paid the full $90 (and sales tax on that), and then collected the $70 worth of rebates (I friggan hate mail-in rebates! http://forums.klipsch.com/idealbb/images/smilies/14.gif"> After all, why the hell does it have to take nearly 2 months to get it back? What? They only got one person to process those? Just give me the damn discount at the register!)." Skonopa, that's the whole point of those stupid mail-in rebates. The companies make most of their money from the people who forget to mail them in, lose the receipt, etc. I won't buy anything anymore with a mail-in rebate, not worth the hassle. Like you say, if they want to give you a sale price, then deduct it at the cash register. Many of them send out rebate checks that are only good for 30 days, etc., so many people lose out by not depositing them before the deadline. It's a big scam. ---------------- I'll say it's a scam. I remember when I bought this computer it had $300 worth of rebates. I had to go about it as a job, it took up a whole evening. I had to get parts of it back from both BB and HP and each piece of the computer, tower, monitor and printer had seperate rebates and very specific requirements for each. I'm sure alot of people just give up. Quote Link to comment Share on other sites More sharing options...
jackbean Posted July 28, 2005 Author Share Posted July 28, 2005 thanks all for the info i found out my rebate is not taxable here in pa. however in n.j. it was. wound up saving with rebate 25% off sticker on my new sierra i'm pretty happy, dealer would not budge on price he actually found the truck i wanted in r.i. and is having it transported here to pa. it was really time to replace my 91' silverado with 530,000 on the odometer thanks again john Quote Link to comment Share on other sites More sharing options...
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