Sunday, July 22, 2012
Chevrolet is running a Chevy Confidence Love It or Return It sales promotion for purchases of any new 2012 or 2013 Chevrolet through September 4: if you do not love the car, you can return it for a full refund (less sales tax) between 31 and 60 days after purchase (as long as the car has been driven less than 4,000 miles). Here is the tax fine print:
Tax Implications: You may be subject to federal, state, or local tax on any benefit paid. You should contact a tax advisor/consultant if You have any questions regarding the tax implications associated with this program.
For example, Edmunds says that a 2012 Chevy Impala LTZ sells new in San Diego for $27,235, and $21,313 used with 3999 miles. So would an Impala buyer have $6,000 income upon returning the car? Or would this be analogous to a purchase price adjustment under § 108(e)(5)?
Hat Tip: Scott Matthews.)