Email I received

[WhiteOleander]

Just want to check to make sure.

The $3500 - $4500 discount that people got in the Cash For Clunkers deal is not taxed Federally? Right?

This email made this big deal out of how the consumer will end up losing in the end and it talked about paying taxes on the money. I understood that is isn't taxed

Thanks.

[Burke]

Check out "Cash for Clunkers" thread posted yesterday.

[Jesse]

I can't seem to locate where I read (or thought I read) that the rebate is only taxable to the dealership, as it was cash received for the sale of inventory.

But it is not taxed to the consumer on the Federal level with all states independent on the determination.

[Bees Knees]

I can't seem to locate where I read (or thought I read) that the rebate is only taxable to the dealership, as it was cash received for the sale of inventory.

But it is not taxed to the consumer on the Federal level with all states independent on the determination.

TTB updates said it.

http://www.thetaxbook.com/updates/thetaxauthority_update_service/pdf/bulletin/6-26-2009_update.pdf