Is a Rebate By a Contractor Reportable as Income?
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: