Financial Information
For USA taxation, is a cash discount that a merchant allows a customer taxable as income to the customer?
Question : For USA taxation, is a cash discount that a merchant allows a customer taxable as income to the customer?
Do any court cases support this?
merchant cash
Best answer:
Answer by card-ron
No, it is not taxable. A cash discount is considered part of the purchase price. Basically the merchant simply lowered the purchase price for the item in question; the merchant did not provide income to the customer.
in a business if you give a discount to another business they will probably declare the discount as other income unless they net out the purchase, either way it results in the same effect
on a personal level, no