Author Topic: miles legal question (Read 4403 times)

Q274 · « **on:** December 07, 2010, 02:05:48 PM »

Does anyone know if a person can get a tax write off for donating miles to a non for profit organization?

Dan · « **Reply #1 on:** December 07, 2010, 02:10:47 PM »

You can't AFAIK.

Smirk · « **Reply #2 on:** December 07, 2010, 02:30:21 PM »

No cost- no deduction

Q274 · « **Reply #3 on:** December 07, 2010, 02:34:44 PM »

how is there no cost to aa miles they themselves sell them. Is there anyway to find out for sure. And is it illegal as far as aa is concerned to barter them?

Smirk · « **Reply #4 on:** December 07, 2010, 02:46:25 PM »

Yes they sell them. If you bought them, then yes you can get a deduction. If not, you can't

To answer the next question......you can always say you did and they probably won't find out, same as you can do with anything but if they do look into it and realize, your screwed

AsherO · « **Reply #5 on:** December 07, 2010, 03:29:41 PM »

Quote from: jackness on December 07, 2010, 02:05:48 PM

Does anyone know if a person can get a tax write off for donating miles to a non for profit organization?

What value would they consider per mile?

SuperFlyer · « **Reply #6 on:** December 07, 2010, 08:40:12 PM »

The value you bought it for, or look on the site, for the "buy miles" price.

Q274 · « **Reply #7 on:** December 07, 2010, 09:50:00 PM »

I spoke to an accountant and he said he actually dealt with this once and you can for sure get a tax write off. he is double checking the amount you can get, is it retail value or is it the going sale price- will keep y'all posted

Dan · « **Reply #8 on:** December 07, 2010, 10:00:48 PM »

Quote from: jackness on December 07, 2010, 09:50:00 PM

I spoke to an accountant and he said he actually dealt with this once and you can for sure get a tax write off. he is double checking the amount you can get, is it retail value or is it the going sale price- will keep y'all posted

Again, you can't take a deduction for something you didn't pay for.

elikay · « **Reply #9 on:** December 07, 2010, 10:07:07 PM »

Dan, as someone who does his own taxes every year I beg to differ. As long as it has intrinsic value (unlike those coupons which say.00000000000000001 value, and even that may be up for debate since you can sell them on ebay) you should be able to claim something for it. According to your train of thought, if I have an apple tree and donated apples to charity would I not be able to claim a deduction.

Dan · « **Reply #10 on:** December 07, 2010, 10:14:16 PM »

You need to have a "basis" to take a deduction. Miles generally have no basis=no deduction.
If you donate your time or services you also can't take a deduction as there is no basis.

Smirk · « **Reply #11 on:** December 07, 2010, 11:14:35 PM »

Well I just spoke to a JD,MBA,CPA in taxation and he said no deduction.

AsherO · « **Reply #12 on:** December 08, 2010, 12:01:19 AM »

Quote from: Smirk on December 07, 2010, 11:14:35 PM

Well I just spoke to a JD,MBA,CPA in taxation and he said no deduction.

How is MBA relevant? He might be a cohen too, for example, but it doesn't qualify him to have the right answer for this question.

Dan · « **Reply #13 on:** December 08, 2010, 12:05:36 AM »

This ought to settle the matter:
http://american.redcross.org/site/PageServer?pagename=T3_philly_airlinemiles

"Persons wishing to donate their frequent flier miles to the Red Cross may do so by contacting the appropriate airline directly. The IRS currently recognizes the donation of frequent flyer points as a gift from the airline to the charitable organization, therefore miles donated to the Red Cross are not considered tax-deductible by the individual donor. For further information we suggest that you consult IRS Publication 526 and/or your personal tax advisor."

Smirk · « **Reply #14 on:** December 08, 2010, 12:11:54 AM »

Apparently you know nothing about an MBA so why would you even say anything?

AsherO · « **Reply #15 on:** December 08, 2010, 12:20:21 AM »

Quote from: Smirk on December 08, 2010, 12:11:54 AM

Apparently you know nothing about an MBA so why would you even say anything?

Ditto to you. An MBA program won't teach you the intricacies of tax deductions.

Search the forum for my posts containing the term MBA, it's there if you'll look for it.

Dan · « **Reply #16 on:** December 08, 2010, 12:24:22 AM »

Quote from: AsherO on December 08, 2010, 12:20:21 AM

Ditto to you. An MBA program won't teach you the intricacies of tax deductions.

Search the forum for my posts containing the term MBA, it's there if you'll look for it.

Many do have tax classes actually.

elikay · « **Reply #17 on:** December 08, 2010, 12:26:32 AM »

Ok so here are a few FT threads on it
http://www.flyertalk.com/forum/milesbuzz/1075886-miles-tax-deductible.html
http://www.flyertalk.com/forum/delta-skymiles-pre-worldperks-merger/331991-donate-skymiles-good-cause.html
http://www.flyertalk.com/forum/milesbuzz/844707-mileage-donation-church-auction-rules-legality.html

AsherO · « **Reply #18 on:** December 08, 2010, 12:27:57 AM »

Quote from: Dan on December 08, 2010, 12:24:22 AM

Many do have tax classes actually.

I know, but even in those courses they won't teach you the intricacies of tax code to the point that you'd be qualified to assert whether a given donation is taxable or not. Just my opinion.

Dan · « **Reply #19 on:** December 08, 2010, 12:34:26 AM »

Quote from: AsherO on December 08, 2010, 12:27:57 AM

I know, but even in those courses they won't teach you the intricacies of tax code to the point that you'd be qualified to assert whether a given donation is taxable or not. Just my opinion.

Qualified opinion, no. But you'd have an educated guess.