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06-07-2008, 09:18 AM
| #1 (permalink) |
| Junior Member  Join Date: Jun 2008
Posts: 1
| I'm planning to buy a jeep, do i have to pay taxes on the incentives and... ...dealer rebates? The dealer is telling in the invoice the incentives and rebates go after the taxes have been calculated on the car. Is that accurate? |
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06-07-2008, 09:19 AM
| #2 (permalink) |
| Junior Member Join Date: Oct 2007
Posts: 3
| yes, that's correct. example: 26000 selling price +2242.50 8.625 tax 28242.50 subtotal -2000 26242.50 total Taxes are charged on rebates, just as if you went to best buy and bought a tv for 1000 with a 100 mail in rebate. you pay tax on the 1000, and then get the rebate of 100. This is the proper way to do it according to tax law. |
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