Is a Rebate By a Contractor Reportable as Income?
Full Question:
Answer:
The answer will depend on all the facts involved and whether the IRS interprets the payment as income. Please see the publication below for a list of the exceptions to income. For example, one exception is a payment that is for replacement of capital, such as damages paid to a buyer by a contractor who failed to complete construction of a building, then it must be included as miscellaneous income on form 1099. We are prohibited from giving tax advice, as this service provides information of a general legal nature. I suggest you consult a local accountant who can review all the facts and documents involved or see the taxpayer assistance information at:
http://www.irs.gov/advocate/article/0,,id=147000,00.html
See also:
http://www.irs.gov/pub/irs-pdf/i1099msc_11.pdf
http://www.irs.gov/app/picklist/list/formsPublications.html?value=1099&criteria=title
