Miles and Taxes

[Baruch]

If cash from sold miles is taxable, why doesn't Chase give you a 1099 when you cash in your points with them @ 1cpp?

[Ephraimh]

If cash from sold miles is taxable, why doesn't Chase give you a 1099 when you cash in your points with them @ 1cpp?

Washington still looks at it as a rebate, but that'll change in the "next couple of years" -- friend a CPA

[Baruch]

But according to that logic, when you sell miles it should also be non-taxable.

[Bostener]

If cash from sold miles is taxable, why doesn't Chase give you a 1099 when you cash in your points with them @ 1cpp?

Special IRS ruling from years ago not to tax mileage.

[Baruch]

Special IRS ruling from years ago not to tax mileage.

So do you believe that cash from miles is not taxable?

The ruling was about mileage not sold mileage.

[Myccrabbi]

I did read up once in FT about the bones for wire transferring with amax, they give 30k and the T &C say somthing about a bonus tax.

[Bostener]

So do you believe that cash from miles is not taxable?

That may be a different story.

The ruling was about mileage not sold mileage.

Now "sold miles" what's the basis?

[12HRS]

That may be a different story.
Now "sold miles" what's the basis?

For cc signup bonuses or cashback?

The cashback is not income IMO, its a refund of cash you already payed taxes on.

[PBaruch]

For cc signup bonuses or cashback?

The cashback is not income IMO, its a refund of cash you already payed taxes on.

Correct - viewed as a rebate on spending. 

[aj26]

At the end of the day, there is no clear ruling on this. So do whatever you want,  and even if you get audited, go to court and lose, you won't have to pay fees or interest, so you won't be a worse position had you not reported it in the first place

[Baruch]

At the end of the day, there is no clear ruling on this. So do whatever you want,  and even if you get audited, go to court and lose, you won't have to pay fees or interest, so you won't be a worse position had you not reported it in the first place

I'm not sure if this is correct when it comes to miles sold for cash.

[churnbabychurn]

http://forums.dansdeals.com/index.php?topic=13881.0
http://forums.dansdeals.com/index.php?topic=24507.0
http://forums.dansdeals.com/index.php?topic=13351.0
http://forums.dansdeals.com/index.php?topic=24959.0
http://forums.dansdeals.com/index.php?topic=4428.0

[yitzf]

http://forums.dansdeals.com/index.php?topic=13881.0
http://forums.dansdeals.com/index.php?topic=24507.0
http://forums.dansdeals.com/index.php?topic=13351.0
http://forums.dansdeals.com/index.php?topic=24959.0
http://forums.dansdeals.com/index.php?topic=4428.0

Doesn't answer OP's question.

[Baruch]

If someone gives me a car, it is not taxable. If I sell the car - IIRC - the money I receive for the car is taxable. So even if the miles and points are not taxable, when you sell them the cash should be taxable.

The exemption of points from taxes would explain no 1099 from Chase when they give you points, but when you cash out the points (thru chase @ 1cpp) why don't they give you a 1099?

It would seem from this that (Chase holds) cash from sold miles is not taxable!




Or maybe, being that Chase is in essence buying those points from you, and a buyer doesn't have to give a 1099?


I know nothing about taxes - please help me out 

[CountValentine]

Special IRS ruling from years ago not to tax mileage.

No such ruling.

[churnbabychurn]

Buyers of many types of assets don't necessarily have to give a 1099, its the responsibility of the taxpayer to report capital gains on the TR.

[Baruch]

Buyers of many types of assets don't necessarily have to give a 1099, its the responsibility of the taxpayer to report capital gains on the TR.

Do you think that sold mileage is taxable?

[metziah]

I wanted to report money that I earned from selling miles, my accountant told me I can't count it.

[CountValentine]

I wanted to report money that I earned from selling miles, my accountant told me I can't count it.

I would get a new accountant.

[churnbabychurn]

Do you think that sold mileage is taxable?

Personally, I do think so. I don't plan on getting audited though.