Why would the tax treatment of the rebate differ if the


Tammy is a member of an electric utility cooperative. As a member, she pays monthly for the electricity she uses, but if the utility has a net profit for the year, she will receive a rebate. In 2017 she paid $3,600 for her utilities and because the cooperative had a profit for 2017, in 2018 she received a check for $360. Why would the tax treatment of the rebate differ if the utilities were used in Tammy's business as compared to her personal residence?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Why would the tax treatment of the rebate differ if the
Reference No:- TGS02645669

Expected delivery within 24 Hours