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Legality of spiff money or kickback money

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We commercial truck salesman get spiff money or kickback money from different body companies that our dealership does business with. They pay a couple hundred dollars per body. This money is added to the cost of the body and thus included in the total sales price of the truck. We get a 1099MISC each year from each body company for tax purposes. The truck manufacturers we sell for also pay this money. One OEM calls it "truck bucks" It seems to be an industry wide practice... Just making sure it's ok... My sales manager and our GM knows about this. Thanks....

Attorney Answer

1
Jonathan Levy ·
If you are getting a 1099 MISC it would seem to be that the body companies are declaring it as some sort of marketing or advertising cost. If it is an industry wide practice, I would not chracterize it as a kickback but as some sort of rebate or incetive payment.
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