Q: Is my rebate from Zillow 360 considered income for IRS purposes? I received a 1099-MISC for it.
To qualify for the rebate, I had to 1) Sell my current home to Zillow, 2) Purchase my new home through an approved Zillow real estate agent, and 3) Finance my new home through Zillow Home Loans. After all three requirements were met, I received a Rebate of 2% of my former home's selling value. It seems that a rebate based on any one of these requirements (1, 2, or 3) would not result in taxable income, so am I safe in assuming that this 'combo' rebate would also not be taxable?
A: You are correct. Generally when a company pays a customer compensation in the form of a rebate as an inducement to use their services (sell/buy/loan), that payment is not considered income. Price adjustments and rebates are not considered in the broad definition of gross income.
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