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Author Topic: Tax on Points and Miles  (Read 3645 times)

Offline RavChik

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Tax on Points and Miles
« on: January 20, 2017, 12:33:16 AM »
Perhaps there was a discussed her, but I can't find it.

Should we pay tax on credit cards miles and paints? What if points were earned on business cc, should it be reported as earning on business tax returns? Does it make a different if points were earned vs used for travel vs sold/transferred?

If there are any CPA and accountants here, please advise

Thank you!
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Offline mmgfarb

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Re: Tax on Points and Miles
« Reply #1 on: January 20, 2017, 12:35:45 AM »
No, points and miles earned through CC's are not taxable. Hopefully it stays that way forever because if it doesn't we're all screwed.
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Offline TimT

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Re: Tax on Points and Miles
« Reply #2 on: January 20, 2017, 12:36:41 AM »
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Offline Freddie

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Re: Tax on Points and Miles
« Reply #3 on: January 20, 2017, 12:37:41 AM »
Quote from: mmgfarb on January 20, 2017, 12:35:45 AM
No, points and miles earned through CC's are not taxable. Hopefully it stays that way forever because if it doesn't we're all screwed.

What about money made on SELLING points and miles?
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Offline Yammer

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Re: Tax on Points and Miles
« Reply #4 on: January 20, 2017, 12:39:39 AM »
Quote from: Freddie on January 20, 2017, 12:37:41 AM
What about money made on SELLING points and miles?
Lol
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Offline mmgfarb

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Re: Tax on Points and Miles
« Reply #5 on: January 20, 2017, 12:40:37 AM »
Quote from: Freddie on January 20, 2017, 12:37:41 AM
What about money made on SELLING points and miles?
Different story.
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Offline RavChik

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Re: Tax on Points and Miles
« Reply #6 on: January 20, 2017, 12:44:09 AM »
Quote from: mmgfarb on January 20, 2017, 12:40:37 AM
Different story.

Can you expand this "Different story"
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Offline Freddie

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Re: Tax on Points and Miles
« Reply #7 on: January 20, 2017, 12:45:50 AM »
Quote from: RavChik on January 20, 2017, 12:44:09 AM
Can you expand this "Different story"

That's what you really meant all along, huh?
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Online ExGingi

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Re: Tax on Points and Miles
« Reply #8 on: January 20, 2017, 12:50:22 AM »
Are you taxed on selling something you don't own?  :D

Check out the T&C of virtually any mileage or point program, and you'll see somewhere that you don't own anything.
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Offline Freddie

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Re: Tax on Points and Miles
« Reply #9 on: January 20, 2017, 12:51:51 AM »
Quote from: ExGingi on January 20, 2017, 12:50:22 AM
Are you taxed on selling something you don't own?  :D

Check out the T&C of virtually any mileage or point program, and you'll see somewhere that you don't own anything.

So no tax on selling the Brooklyn Bridge, right?
No matter how many times you sell it.

Serious question.
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Online ExGingi

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Re: Tax on Points and Miles
« Reply #10 on: January 20, 2017, 12:53:38 AM »
Quote from: Freddie on January 20, 2017, 12:51:51 AM
So no tax on selling the Brooklyn Bridge, right?
No matter how many times you sell it.

Serious question.
That would be unconstitutional. Double jeopardy. Taxed and jailed? Or as we say קם ליה בדרבה מיניה (though I can think of some people who would consider the tax worse than jail time ;))
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Offline MeirS

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Re: Tax on Points and Miles
« Reply #11 on: January 20, 2017, 12:54:31 AM »
Quote from: RavChik on January 20, 2017, 12:33:16 AM
Perhaps there was a discussed her, but I can't find it.

Should we pay tax on credit cards miles and paints? What if points were earned on business cc, should it be reported as earning on business tax returns? Does it make a different if points were earned vs used for travel vs sold/transferred?

If there are any CPA and accountants here, please advise

Thank you!
You are some lucky guy.

No one complaining about opening a new thread!
No one complaining that half the sentences are misspelled and not easily understood.

Today must be your lucky day!
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Online ExGingi

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Re: Tax on Points and Miles
« Reply #12 on: January 20, 2017, 12:56:41 AM »
Quote from: MeirS on January 20, 2017, 12:54:31 AM
You are some lucky guy.

No one complaining about opening a new thread!
No one complaining that half the sentences are misspelled and not easily understood.

Today must be your lucky day!
Hey. It's 12:55am on a Friday. And not just any Friday. It's DJT's  inauguration day!
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I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Freddie

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Re: Tax on Points and Miles
« Reply #13 on: January 20, 2017, 12:58:41 AM »
Quote from: MeirS on January 20, 2017, 12:54:31 AM
You are some lucky guy.

No one complaining about opening a new thread!
No one complaining that half the sentences are misspelled and not easily understood.

Today must be your lucky day!

It's so true. What's happening to us?!
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Offline TimT

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Re: Tax on Points and Miles
« Reply #14 on: January 20, 2017, 01:01:32 AM »
Quote from: Freddie on January 20, 2017, 12:58:41 AM
It's so true. What's happening to us?!
MAGA
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Offline Freddie

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Re: Tax on Points and Miles
« Reply #15 on: January 20, 2017, 01:02:03 AM »
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Offline TimT

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Re: Tax on Points and Miles
« Reply #16 on: January 20, 2017, 01:03:43 AM »
Quote from: Freddie on January 20, 2017, 01:02:03 AM
MDDFGA
That occurred to me, but that somehow implies that DDF wasn't always great.
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Offline RavChik

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Re: Tax on Points and Miles
« Reply #17 on: January 20, 2017, 10:34:36 AM »
Thanks for all your remarks and comments. Can somebody give me the proper answers? I am sure a lot of people here are taking advantage of CC points and I would like to know how IRS consider them
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Offline username

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Re: Tax on Points and Miles
« Reply #18 on: January 20, 2017, 10:42:23 AM »
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Offline KidOOO

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Re: Tax on Points and Miles
« Reply #19 on: January 20, 2017, 12:35:27 PM »
Not a CPA but IIRC no tax on points as they are considered purchase rebate

As for selling I would think tax is due
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