Updated almost 14 years ago on .
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Rebates and Taxes
If I buy something for a property and get a rebate, do I have to reduce the deduction amount by the amount of the rebate? What about reward credit cards, if I get 5% back on purchases, do I have to take that out of the deduction as well?
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Kyle, according to IRS PUB 525, a rebate is a reduction of the expense or the basis of an asset. I treat the "rewards cards" in the same way.