How Much is a Donated Miles Ticket Worth?

[avromie7]

Actually I was using the sale  value of the points (1.4) but I definitely see your angle as well.

Points don't officially have a sale value

[Myccrabbi]

Points don't officially have a sale value

I Don't know what "officially" means, there is a value out there.

[avromie7]

I Don't know what "officially" means, there is a value out there.

But that are not transferable therefore legally their sale value is useless it's like trying to get a deduction for the street value of weed

[Dan]

But that are not transferable therefore legally their sale value is useless it's like trying to get a deduction for the street value of weed

-1, that's not the issue.
You are allowed to use miles to book someone else.

[Myccrabbi]

But that are not transferable therefore legally their sale value is useless it's like trying to get a deduction for the street value of weed

Wrong!
1. selling is not illegal just against T&C.

2. Donating points is actually according to the T&C.

3. If it were illegal I wouldn't compare it to donating weed to say simcha camp.

4. Soon weed is being legal.
(There are many factors that Is legal already )

[peacenlove613]

On a similar note how about for personal masir. I just bought someone a ticket from ny to la for 25,000 points. It would have cost him $850. I was told I can take it out masir. How much should I take?

[henche]

Bottom line, ask an accountant if you can take a deduction for something with a zero cost basis.

If you can, we can all get out of paying any federal taxes by just donating some F class tickets

Well, that's the basic case I was discussing before.

You form a start up and fund it with 10,000 dollars. That's your basis.  You do well and sell get VC funding, and then a PE sponsor and then eventually you go public and it's worth 100 million dollars.

General rule is you can donate that and deduct the 100 million and never have that income either.

[Dan]

On a similar note how about for personal masir. I just bought someone a ticket from ny to la for 25,000 points. It would have cost him $850. I was told I can take it out masir. How much should I take?

Excellent. A few F tickets and my taxes and maiser are all covered.
The Loopholer Rebbe will be proud!

[Redbull3]

Bottom line, ask an accountant if you can take a deduction for something with a zero cost basis.

If you can, we can all get out of paying any federal taxes by just donating some F class tickets

Wouldn't it be more profitable to just sell the tickets?

[Dan]

Wouldn't it be more profitable to just sell the tickets?

You know someone willing to pay $30K for 110K miles?

[Redbull3]

You know someone willing to pay $30K for 110K miles?

How is 110k miles worth $30k to you if you donate it and deduct it. I'm lost.

[ckmk47]

How is 110k miles worth $30k to you if you donate it and deduct it. I'm lost.

He means he's booked tickets for 110K miles.  Those tickets would have cost $30K if bought with cash.
If he donated those tickets, and that donation was tax deductible, what value is written on the tax donation receipt?

[Redbull3]

He means he's booked tickets for 110K miles.  Those tickets would have cost $30K if bought with cash.
If he donated those tickets, and that donation was tax deductible, what value is written on the tax donation receipt?

Ah I see. But even then, deducting 30k from your income is going to be worth your bracket x 30k, so his question should have been do I know someone who will buy 110k miles for 7-10k, or something like that, no?

[ckmk47]

Ah I see. But even then, deducting 30k from your income is going to be worth your bracket x 30k, so his question should have been do I know someone who will buy 110k miles for 7-10k, or something like that, no?

You're right. But in the heat of the conversation....

[Menachem613]

Bottom line, ask an accountant if you can take a deduction for something with a zero cost basis.

If you can, we can all get out of paying any federal taxes by just donating some F class tickets

The issue is whether you have a basis in the miles. 

[Dan]

The issue is whether you have a basis in the miles. 

Ir there was a basis you'd owe tax on it, no?

[Smokey Joe Robinson]

I love this:

I donate 110k miles and get a receipt for $30,000. At a 30% (for argument's sake) tax bracket my taxes owed are reduced by $9000. I can open a whole new business making, I mean saving,  money off donating tickets (by writing off the value of the donated ticket up to my taxable income of course). And Im a tzadik for helping out the Klal. 

[ckmk47]

From the Huffington Post


Rewards points that are acquired for free are not tax deductible because they were not paid for by the person making the donation.  Rewards points are only tax deductible if the points were purchased.  If you purchase them for the sole purpose of donation, you can use it as a write-off. The only time something is deemed tax deductible by the IRS is when it is paid for.




Although this refers to MILES not TICKETS.

[Dan]

From the Huffington Post


Rewards points that are acquired for free are not tax deductible because they were not paid for by the person making the donation.  Rewards points are only tax deductible if the points were purchased.  If you purchase them for the sole purpose of donation, you can use it as a write-off. The only time something is deemed tax deductible by the IRS is when it is paid for.




Although this refers to MILES not TICKETS.

Same thing.

Like I said,

$0.

No basis, no write-off.  At least that's my understanding but IANAA.

[Menachem613]

Ir there was a basis you'd owe tax on it, no?

Not always.