"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote in message
news:uBSBk.32768$XB4.31590[at]bignews9.bellsouth.net...
- quote -

In this case, it's an in-store gift card that can only be used at the
pharmacy (though oddly it can't be used on prescriptions)...

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joe taxpayer wrote:

When you deposit
funds at a bank to get a free iPod, the value is part of income, as
interest on the account would be.


Andy comments:

And, yet, the bank declares, in their advertising, that you are
getting a
"gift". A gift is taxable only to the giver...

But at the end of the year, they add their own determination of the
value of the "gift" to your interest statement......

..... this often results in the tax due on the "gift" being greater
than the
cost of the item if the depositor had just gone out and bought
it......

Back in the 80's, I ended up in paying more tax for a toaster than a
new toaster would have cost me.... I cancelled my account with that
bank.

Andy in Eureka, Texas


Civis Eurekus Sum

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"jack" <jack[at]yahoo.org> wrote in message
news:_TFBk.601$2H2.431[at]fe097.usenetserver.com...
- quote -

It reduces your basis.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <_TFBk.601$2H2.431[at]fe097.usenetserver.com> ,
jack <jack[at]yahoo.org> wrote:
- quote -

A reduction, so long as the effective price doesn't drop below $0 (in
which case the rest is income).

Seth

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On Sep 22, 1:38�pm, "jack" <j...[at]yahoo.org> wrote:
- quote -

Even if you consider this rebate as a GIFT, the nontaxability still
applies. Gifts are not income.

- quote -

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<removeps-groups[at]yahoo.com> wrote in message
news:542e9358-a2cc-4e98-9d23-9524b7ca3761[at]a18g2000pra.googlegroups.com...
- quote -

involved. I bought a saw, a lathe, and a jointer; none were Microsoft
products (obviously). Anything on eBay was eligible (subject to a few
contraints); so it was more like a gift than a reduction in price since MS
didn't get any of my money.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Rick" <rick[at]nospam.com> wrote
- quote -



That sounds like income. This is based on the gift card being accepted
off-site at a competitor store, for groceries, or beer.

I might think differently is it's an in-store card, as that would be a
discount off future business with them. Just like those places where you
buy 12 subs and get the 13th sub for free.





--
Paul A. Thomas, CPA
Watkinsville, Georgia

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"joe taxpayer" <joetaxpayer[at]comcast.net> wrote in message
news:6cmdnXkh99rjWUrVnZ2dnUVZ_tninZ2d[at]comcast.com...
- quote -


What about a situation where a pharmacy offers a $25 gift card if you
transfer a prescription from another pharmacy. For example, I can transfer
a prescription from another pharmacy that would normally cost, say, $10. I
still have to pay the $10 to the new pharmacy, but the pharmacy then gives
me a free $25 gift card to use on a future purchase. The question I have is
can I still deduct the $10 cost of the prescription as a medical expense and
do I have to report the $25 gift card as income?

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"jack" wrote:

- quote -

The latter. See IRS Publication 525.

--
Phil Marti
Clarksburg, MD

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Sep 22, 7:54 am, "jack" <j...[at]yahoo.org> wrote:

- quote -

Rebates are not taxable income at the personal level. Did you use any
or all part of the software for business?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

jack wrote:
- quote -

The way this is treated is the same as a discount. When you deposit
funds at a bank to get a free iPod, the value is part of income, as
interest on the account would be. But as you suggest, this refund is
just a cost reduction.

Joe

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Microsoft ran a rather odd program where they would issue you a rebate of
25% for anything bought on "buy it now" ebay, and paid for with Paypall.

I took full advanage of it and I (well, me, my wife and son) are getting
about $1,000 in rebates.

Is it income, or simply a reduction in what I paid for the stuff.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >