Quote:
Originally Posted by bokmeipai
I had no problem with my CA applying $2k incentive but they took it off the end after tax claiming that the rebate is taxable. But according to the way it reads is credit is applied off of msrp. Somehow I think dealer benefited from this. But whatever, glad my car is finally here and just in time for 2021 incentives.
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Any dealer incentive is always taxed. Any money the dealer gives out of their pocket is not taxed.
For example.
MSRP: $50,000
Dealer discount: $5,000
BMW incentive: $2,000
You would be taxed on $48,000, even though the purchase price would be $43,000.
Also, BMW incentive is actually $2500 if you were getting out of a previous lease. My dealer kept saying $2,000 until I pushed the lease to lease credit and they applied the extra $500 for a total of $2500.