Clunkers money was not taxable income to buyer.

Apparently, the "Clunkers $" is not taxable to purchasers. http://www.kjrh.com/content/financialsurvival/tulsa/story/Is-your-tax-for-clunkers-taxable/-zAJabMtrkiD61y18Ysq2A.cspx .... Mary Kay called to tell us she's curious about the federal program that gives folks up to $4500 when they trade in certain gas guzzling vehicles and buy more efficient ones. She asks, "Is the $4500 Cash For Clunkers voucher a free gift from the government, or will it be considered taxable income at the end of the year? If taxable, folks may want to consider what that $4500 may net them after taxes are paid on it." It's a good question. So we got in touch with the Oklahoma Society of CPAs. I'm told it will not be considered taxable income for the person who buys the car, so they won't be paying any tax on it. But the dealer will be taxed on the cash it receives for those clunkers that are turned in. Afterall, CPAs tell us, the money the government gives to dealers for the cash for clunkers program, is considered taxable income for them, but not for the customer.