Financial Information
Under USA taxation, is a cash discount that a merchant allows a customer taxable as income to the customer?
Question : Under USA taxation, is a cash discount that a merchant allows a customer taxable as income to the customer?
Do any court cases support the position?
merchant cash
Best answer:
Answer by Barry auh2o
No. The discount is not income. Neither is a rebate.
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#2 written by tonalc2 1 year ago
The only references I found to discounts have to do with work-related discounts:
http://www.irs.gov/publications/p525/ar02.htmlBut I’m not an expert, and didn’t look very long.
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no, but customer must usually pay tax on the price before discount.