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Just an idea to help someone out
Posted by: D-Rod
Date: February 26, 2006 09:35PM
My friend used to do this and I have done it a few times. A lot of users here seem to hate rebates. Well what my friend would do is find a needy family and anything he bought he would have the rebate sent to them. This way he didn't really worry as much about the rebates and he could help people out without really putting out direct cash to them. He just put it in his mind that he was paying regular price. I wonder if as a business you could deduct the total cost of the item. It really came in handy to the people that received it too, especially a nice check for $50 or $100. But even the small ones of a few bucks helped out.

Dennis R



Formerly known as Dennis R
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Re: Just an idea to help someone out
Posted by: Refurbvirgin
Date: February 26, 2006 09:46PM
If you were donating the rebate to a recognized charity, or non-profit, like a 501(c)3, it would seem you could deduct the rebate, but not "the total cost of the item." If you donate to a private unrelated individual I think that's technically taxable income for them.

Were the IRS to allow such gifts it might be hard to sort out what were gambling debts and what were charity, for example. Gifts to your child under $10,000/ year used to be allowed tax free. Not sure about current laws. You'd also want to get a receipt for the rebate from the beneficiary, to prove your generosity to the IRS.

I'm not an accountant, though. Best to ask your CPA.




Edited 1 time(s). Last edit at 02/26/2006 09:46PM by Refurbvirgin.
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Re: Just an idea to help someone out
Posted by: D-Rod
Date: February 26, 2006 09:52PM
No, I meant to deduct the cost of the item for business. Like If I bought a new hard drive for my business I would deduct that cost not figuring the rebate. Not to deduct it as a donation to a charity.

Dennis R
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Re: Just an idea to help someone out
Posted by: New.Dad
Date: February 26, 2006 10:04PM
Refurbvirgin Wrote:
-------------------------------------------------------
> [snip] Gifts to your child under
> $10,000/ year used to be allowed tax free. Not
> sure about current laws.

Yeah, that's what I knew, but I am not sure if it is still possible. I could save another 1000 or even more if I were to do this, not that I have a baby smiling smiley
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Re: Just an idea to help someone out
Posted by: Refurbvirgin
Date: February 26, 2006 10:27PM
Dennis R Wrote:
-------------------------------------------------------
> No, I meant to deduct the cost of the item for
> business. Like If I bought a new hard drive for my
> business I would deduct that cost not figuring the
> rebate. Not to deduct it as a donation to a
> charity.

If you get audited and they see a deduction for a rebate given to a charity for an item you're also claiming as a business expense, full value, it might cost you more than you'd save. So figure the odds of your getting audited. Have you made any substantial donations to Democrats? :-)
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Re: Just an idea to help someone out
Posted by: rgG
Date: February 26, 2006 10:41PM
New.Dad Wrote:
-------------------------------------------------------
> Refurbvirgin Wrote:
> --------------------------------------------------
> -----
> > Gifts to your child under
> > $10,000/ year used to be allowed tax free.
> Not
> > sure about current laws.
>
> Yeah, that's what I knew, but I am not sure if it
> is still possible. I could save another 1000 or
> even more if I were to do this, not that I have a
> baby

The tax that this refers to is gift tax, not income tax. It means that for gifts under $11,000 per year (current rate)to any person, you do not have to file a gift tax return or pay an additional "gift tax" on the $11,000. You still owe any income tax on that money. This refers to gifts to individuals not charities.








Roswell, GA (Atlanta suburb)
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Re: Just an idea to help someone out
Posted by: GeneL
Date: February 26, 2006 10:47PM
I don't imagine that the rebate would show up to the IRS if they see a receipt for the amount actually paid for an item.

If the purchaser doesn't cash the rebate themself, there wouldn't be any paper trail, would there?

On the other hand, how would the recipient cash a rebate check which would be written to the purchaser?

I guess that, in filling out the form, the recipients name could be substituted for the real purchaser. Non?
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Re: Just an idea to help someone out
Posted by: Refurbvirgin
Date: February 27, 2006 12:11AM
Don't most rebates require turning in the original receipt? Would the IRS accept a copy, or suspect you'd bought something, then returned it?
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Re: Just an idea to help someone out
Posted by: D-Rod
Date: February 27, 2006 07:16AM
Okay everyone, the deduction was just a last minute thought. The idea was just to help a poor family out by sending them the rebates. It was just a nice way to help someone out a little. That's all. I have seen his friend getting one of the rebate checks and saw how much it meant to her.

Dennis R
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Re: Just an idea to help someone out
Posted by: Michael
Date: February 27, 2006 09:07AM
I think this is a nice idea--put in the person's name/address and send it off.

If it's for business, deduct the before-rebate amount of the item. If there's an audit and somehow you get snagged, then pay the $15 to our Uncle Sammy and feel good about helping someone!
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