Author Topic: PSA: Don't swipe recklessly for others  (Read 257478 times)

Offline Yard sale

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Re: PSA: Don't swipe recklessly for others
« Reply #3195 on: March 06, 2019, 03:11:12 PM »
As I said, with cash you need to talk to your accountant. It's worth discussing that 2% from a cashback card is not taxable under ordinary circumstances.

If you mean swiping for personal use where it can be considered a rebate on the purchase price absolutely. For business (or for swiping income, cc farm etc.) there will likely be tax implications.

Offline aygart

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Re: PSA: Don't swipe recklessly for others
« Reply #3196 on: March 06, 2019, 03:19:46 PM »
If you mean swiping for personal use where it can be considered a rebate on the purchase price absolutely. For business (or for swiping income, cc farm etc.) there will likely be tax implications.
How could something be a rebate on an item purchased when there is no item purchased? (I think I am agreeing with you)
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline knowitall

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Re: PSA: Don't swipe recklessly for others
« Reply #3197 on: March 06, 2019, 03:24:00 PM »
Looks like this thread may need to get split off again.

Relevant question:
Was Sterling paying victim's CC directly, or were they giving checks for what they swiped?

Offline knowitall

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Re: PSA: Don't swipe recklessly for others
« Reply #3198 on: March 06, 2019, 03:26:49 PM »
Listening now to the Brenner interview for the first time.

A few takeaways so far.

1. I say um too much.
2. It does sound like AT is personally involved in $50MM+ of these cases, though which side for each is unclear.
3. AT says disputing can get you in criminal trouble as you affirming under oath that you don't recognize the charge, but an initial chargeback isn't an affirmation under oath. Of course it may come to that, but it should not be hard to at least initiate a chargeback without those repercussions.
I have no clue if Sterling on Central Ave in Lawrence is affiliated, but listen to how AT answers the question, it definitely sounds like he's hiding something.

Offline Yard sale

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Re: PSA: Don't swipe recklessly for others
« Reply #3199 on: March 06, 2019, 03:29:46 PM »
How could something be a rebate on an item purchased when there is no item purchased? (I think I am agreeing with you)
Well, if the card was swiped by a supplier the rebate would be on the cost of the supplies. If it was directly swiped by the business, the rebate would be on the amount “lent” to the business. In either case it would lower the cost basis, and have tax implications when the full amount before the rebate is paid back to the credit card holder.

Offline ExGingi

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Re: PSA: Don't swipe recklessly for others
« Reply #3200 on: March 06, 2019, 03:31:42 PM »
I have no clue if Sterling on Central Ave in Lawrence is affiliated, but listen to how AT answers the question, it definitely sounds like he's hiding something.

Years ago there might have been an affiliation between the two. I believe both businesses have changed owners (possibly multiple times).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline aygart

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Re: PSA: Don't swipe recklessly for others
« Reply #3201 on: March 06, 2019, 03:32:53 PM »
Well, if the card was swiped by a supplier the rebate would be on the cost of the supplies. If it was directly swiped by the business, the rebate would be on the amount “lent” to the business. In either case it would lower the cost basis, and have tax implications when the full amount before the rebate is paid back to the credit card holder.
Basically, making the arguments on DDF is fun. In front of an IRS auditor-not so much. At the very least it is unclear enough that it is not something you really want to have them looking at.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline Yard sale

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Re: PSA: Don't swipe recklessly for others
« Reply #3202 on: March 06, 2019, 03:47:52 PM »
Basically, making the arguments on DDF is fun. In front of an IRS auditor-not so much. At the very least it is unclear enough that it is not something you really want to have them looking at.

It’s pretty simple:
https://www.nonprofitaccountingbasics.org/federal-tax-issues/taxability-credit-card-cashback-rewards

Offline PSA

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Re: PSA: Don't swipe recklessly for others
« Reply #3203 on: March 06, 2019, 03:48:13 PM »

I was only addressing your third point that you would stay under the radar by not disputing. I haven't given any advice about disputing or any other legal matter. I just think that anyone who is under the impression that not disputing will keep you under the radar is either deluding themselves or is being told that by someone with alterior motives. As I said, if you have reason to believe that what I said isn't true then please share but from everything I can see here and elsewhere, there is no reason to think that the banks aren't looking at every transaction.

You just think.... Blah blah....
Again, disputing can potentially affect your defaulting options.

Online LoLo

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Re: PSA: Don't swipe recklessly for others
« Reply #3204 on: March 06, 2019, 03:49:21 PM »
He didn't say otherwise, let it go.

Offline mmgfarb

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Re: PSA: Don't swipe recklessly for others
« Reply #3205 on: March 06, 2019, 03:50:06 PM »

You just think.... Blah blah....
Again, disputing can potentially affect your defaulting options.
That may be true, I know nothing about it and have never pretended that I do, I was just commenting on that single point of yours which I think is untrue, I didn't say anything about whether or not anyone should dispute.
"JS [is] a fetid cesspool of unvarnished linguistic manure, with lots of useless drivel and post-padding." -Moishebatchy

Offline aygart

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Re: PSA: Don't swipe recklessly for others
« Reply #3206 on: March 06, 2019, 03:50:51 PM »

You just think.... Blah blah....
Again, disputing can potentially affect your defaulting options.
I understand that you are unfortunately under a lot of pressure, but this has zero relevance to anything @mmgfarb wrote. It may or may not affect defaulting options, but does that mean it will keep one under the radar?
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline PSA

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Re: PSA: Don't swipe recklessly for others
« Reply #3207 on: March 06, 2019, 03:54:37 PM »
I understand that you are unfortunately under a lot of pressure, but this has zero relevance to anything @mmgfarb wrote. It may or may not affect defaulting options, but does that mean it will keep one under the radar?
100% and that's not coming from people with ulterior motives...

This is a useless argument. Every person who's involved should make their decision based on the advice of their attorney, and rav
« Last Edit: March 06, 2019, 04:07:21 PM by PSA »

Offline aygart

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Re: PSA: Don't swipe recklessly for others
« Reply #3208 on: March 06, 2019, 03:57:35 PM »
It’s pretty simple:
https://www.nonprofitaccountingbasics.org/federal-tax-issues/taxability-credit-card-cashback-rewards
That is his opinion.

However, there are some situations where the IRS could view.....
then the points are generally considered......
 the IRS could consider........
 then it should reduce......

Doesn't sound so clear and simple.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline sky121

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Re: PSA: Don't swipe recklessly for others
« Reply #3209 on: March 06, 2019, 04:11:30 PM »
Listening now to the Brenner interview for the first time.

A few takeaways so far.

1. I say um too much.
2. It does sound like AT is personally involved in $50MM+ of these cases, though which side for each is unclear.
3. AT says disputing can get you in criminal trouble as you affirming under oath that you don't recognize the charge, but an initial chargeback isn't an affirmation under oath. Of course it may come to that, but it should not be hard to at least initiate a chargeback without those repercussions.
You didn't say it enough that I particularly noticed, so that's good.  But you were probably being extra critical of yourself.
"Not all who wander are lost"