Taxes: Big Money...?

[mmgfarb]

I wouldn't cycle your CL on a Chase card.

[16guitar]

I wouldn't cycle your CL on a Chase card.

+1
Pretty sure that got me shut down

[Ephcc90]

Thank you all for the great comments.

It was a collectible at 1.3 that was gifted to me with no cost basis.  I'm seeing if I can determine cost basis at time of gift to try to help lower the cost but not sure that will fly with my CPA.

In order to keep things feeling fair with my siblings I am gifting/paying for their kid’s college for the next year which is adding up and has not left as much as you might think.  I’m really happy to do that and not having kids myself I’m amazed at what parents sacrifice to educate their children!

I’m paying the whole tax as a result and happy to do it (it's a good problem to have as was mentioned above). Well....sort of.....

Here’s my math.

400 x 1.87 = $7,480.

$400k x 1.5 Freedom unlimited should equal 600,000 Ultimate Reward points.

It seems it’s worth doing but.....is there a better way which is why I posted.

Since I’ll be traveling with my wife I’d be betting I can find 2 or 4 business class or better flights via the chase portal that will cost more than $7,500.

We’ll see if I get the Unlimited card and if they will work with me on the CL.
As soon as the charges post I’ll pay it.  A week at a time and some delays and I should be able to clear by tax day.

There is the processing that they say will only allow 2 or 3 charges.  So I might be out of luck there.

What would be a good second card to use?  Club Card? but them I’m limited to United and don’t get to accrue points.

If there is a better strategy someone might like to share I’m all ears.

VGC but I don’t have an easy way to liquidate.
I'm still living in wallyworld.

Thanks again all.

Did the person who gifted it to you pay any gift tax? Does it really have zero basis or you just don’t know the basis?

[ckmk47]

Here’s my math.

400 x 1.87 = $7,480.

$400k x 1.5 Freedom unlimited should equal 600,000 Ultimate Reward points.

It seems it’s worth doing but.....is there a better way which is why I posted.

Since I’ll be traveling with my wife I’d be betting I can find 2 or 4 business class or better flights via the chase portal that will cost more than $7,500.

Thanks again all.

Congrats on your windfall!
Nice to keep things 'even' with your brother, family is more important than stuff.


The Freedom Unlimited at 1.5 UR ppd, looks like the right card to me if you're paying by cc. You'll be paying over 1.2 cents per point.


The next thing is getting the most value for those points. Booking through the Chase portal with the CSR will give you a value of 1.5 cpp, but transfering those points to a frequent flyer account and booking with the airline, may give you a greater value.
For that, you need to read more of these forums and ask again for advice.


Good luck and happy traveling.

[Mo2]

No reason to use UA Club over Freedom or Ink Unlimited.
AMEX Blue Biz earns 2ppd, but that's capped at $50K/year.

With business cards you can try for the chase ink unlimited which like the freedom earns 1.5ppd.
I love my Amex Blue Biz
The Amex Biz Plat offers 1.5ppd on transactions of 5k or more. don't think it's capped (ETA up to 1 million bonus points)

[yelped]

With business cards you can try for the chase ink unlimited which like the freedom earns 1.5ppd.
I love my Amex Blue
The Amex Business Plat offers 1.5ppd on transactions of 5k or more. don't think it's capped

Up to a million bonus points a year.

[ckmk47]

Biz cards don't add to Chase's 5/24 count. (But if you're already 5/24 you won't be approved for one.)  So apply for the biz cards first.