1099 misc for ADS-B rebate

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Baron62

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Baron62
Has anyone received a 1099 misc for their $500 rebate? I have not seen one yet for my 2018 install rebate. Maybe they are held up due to the partial government shut-down last month.
 
The threshold for a 1099-MISC is $600, so you won’t get one.
 
EdFred said:
Who told you it would be taxable income?
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Just folks on here when reading about ADS-B. I guess its not reportable because it falls below the $600 limit.
 
It's not taxable because it's considered a reduction in price not income. Just like stuff on sale at your grocery store or your credit card cashback are not considered income, they're just considered a reduction in price. If it was taxable income you would still have to report it even without the 1099.
 
Actually, they will send you a 1099 Misc, unless the new tax law change it. Those who installed in 2017 or earlier received the 1099 and had to claim on tax return. Net savings about $350-400.
 
I never got a 1099 for my rebate. I never talked to anyone else who did. It is taxable. It’s not just a reduction in price. The $600 threshold has nothing to do with taxable vs non-taxable. Even if you don’t get a 1099, it’s still taxable.
 
Sounds like a discount, not income. Heck I’d think most everyone would be in write off territory if they do the ADSB thing.
 
Well i guess i better report the rebates i got from discount tire, remington, and whoever else I mailed one in to since the FAA is now in charge of writing tax laws.
 
Rcmutz said:
Actually, they will send you a 1099 Misc, unless the new tax law change it. Those who installed in 2017 or earlier received the 1099 and had to claim on tax return. Net savings about $350-400.
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So the avionics shop asked for your social security number when you got a transponder installed. LOL! That is the dumbest crap I ever heard.
 
pigpenracing said:
So the avionics shop asked for your social security number when you got a transponder installed. LOL! That is the dumbest crap I ever heard.
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The shop would not have needed the SSN, since they did not issue the "payment."

But the ADSB rebate program does not ask for a taxpayer ID, so your point basically stands.
 
That’s the difference. A rebate from discount tire or Remington are from discount tire and Remington respectively. The FAA rebate is a payment to you as an incentive to buy something for your plane. If Garmin gives you a rebate for buying a Garmin product, that would be a discount.

Without having taxpayer ID, I can’t see any way of tracking, but it is the same if you mowed someone’s lawn and got paid $100. That is why there is a threshold. You are still legally obligated to report and pay taxes on that income, but there is no practical way for them to police that.
 
Until the FAA shares that information with the federal IRS. How do you think your state taxing agencies find out you bought an airplane and brought it into your state. Next thing you eventually geta Letter from your state taxing agency, probably after you get a letter from the state aviation department asking you to register your new airplane. Now, the question is, will the federal IRS bother with it?
 
EdFred said:
It's not taxable because it's considered a reduction in price not income. Just like stuff on sale at your grocery store or your credit card cashback are not considered income, they're just considered a reduction in price. If it was taxable income you would still have to report it even without the 1099.
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Getting a check from the govt. for a transponder is a subsidy not a discount.
 
This is just like the line on the state income tax that asks how much you bought out of state and didn't pay taxes on. You have to go to Amazon to get the info and then declare to the state. In the same way you have to declare income whether it is reported to the IRS or not. When the IRS asks, this is what I do.
 
cgrab said:
This is just like the line on the state income tax that asks how much you bought out of state and didn't pay taxes on. You have to go to Amazon to get the info and then declare to the state. In the same way you have to declare income whether it is reported to the IRS or not. When the IRS asks, this is what I do.
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In California, we're allowed to use a figure based on income. Makes it real easy, and it's a pittance compared to what it would probably be if I dug up the actual information.
 
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