"Arthur L. Rubin" wrote:

- quote -

For what it's worth, code section 136(a) states that
rebates are excludable in general, but 136(b) seems
consistent with either (2) or (3).

- quote -

I think I found it -- but it's the other way around. Code
section 136 was effective 1/1/95 for Federal purposes,
but 1/1/97 for CA purposes.

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"Arthur L. Rubin" wrote:

- quote -

For what it's worth, code section 136(a) states that
rebates are excludable in general, but 136(b) seems
consistent with either (2) or (3).


- quote -

I think I found it -- but it's the other way around. Code
section 136 was effective 1/1/95 for Federal purposes,
but 1/1/97 for CA purposes.

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Arthur L. Rubin wrote:

- quote -

Here's a vote in your favor. The rebate would not exists
except for the purchase of equipment, so that's the proper
way to treat it.

- quote -

Can't speak to California; having enough trouble
understanding how the governor elect might be recalled
within the next twelve months. But surely that type of
exemption would apply to individuals.

Nan?
Katie?

Cheer4
Harlan Lunsford, EA in LA

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Are utility rebates on low-energy equipment (washers and
dryers) used in residential rental property considered (1)
additional income; (2) a reduction in the utility bill; or
(3) a reduction in basis of the equipment. (3) makes sense
to me.

Also, I seem to recall reading that utility rebates are
exempt from CA income tax, but I can't find the specific
provision.

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