If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

f no... lol

newhowdyag2004 said:

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If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

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Book flight. Get receipt. Cancel within 24hrs. Get refund. Book with miles. Turn in receipt. Take deduction on the receipt....PROFIT

I am not an accountant.

IrishTxAggie said:

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newhowdyag2004 said:

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If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

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Book flight. Get receipt. Cancel within 24hrs. Get refund. Book with miles. Turn in receipt. Take deduction on the receipt....PROFIT

I am not an accountant.

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yeah....something about aggies do not lie, cheat, steal...

Ag92NGranbury said:

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IrishTxAggie said:

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newhowdyag2004 said:

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If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

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Book flight. Get receipt. Cancel within 24hrs. Get refund. Book with miles. Turn in receipt. Take deduction on the receipt....PROFIT

I am not an accountant.

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yeah....something about aggies do not lie, cheat, steal...

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Only on our taxes.

No, just like you didn't pay taxes when you earned your miles.

reduce taxes on money spent, not a hypothetical deduction.

Also, pay tax on income received, not potential or hypothetical income.

It's not hard.

HeightsAg said:

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No, just like you didn't pay taxes when you earned your miles.

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Actually, the IRS could argue that the miles were an award and therefore taxable. Im surprised the IRS has never pushed this, to be honest.

They do if you gift them.

gigemhilo said:

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HeightsAg said:

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No, just like you didn't pay taxes when you earned your miles.

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Actually, the IRS could argue that the miles were an award and therefore taxable. Im surprised the IRS has never pushed this, to be honest.

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If they did, it might be the end of frequent flier programs & credit card awards programs... I'm very surprised as well.

There's existing IRS guidance indicating that CC rewards and FF miles are a rebate to the customer and therefore non taxable. That could change in the future but that's the way it is treated now.

Definitely a gray/fluid situation especially with all the innovation that is taking place in the rewards/loyalty market. Recently, I got 60k points for a Chase Sapphire Banking sign-on bonus and per Chase, they valuate the points at $0.01 so they are issuing customers with a 1099-INT for $600. In this case, I didn't purchase anything so I suppose technically it can't be a rebate.

https://thepointsguy.com/guide/are-bank-account-bonuses-taxable/

You purchased a membership to the use of that card no?

I've read the same things but have not received any 1099's so far.

No, this was a bank account where I had to deposit and maintain a certain amount with Chase for 90 days.

Gotcha

Yes - bank accounts are treated differently because they are not a rebate... so there is no wiggle room.

The rebate concept even seems to be a little iffy for me. Again - very surprised they aren't chasing that. There must be a court precedent on this already.

Why don't you guys just shut your freaking pie holes and let sleeping dogs lay.

I thought based on the new tax laws unreimbursed business expenses were no longer deductible. Basically pretty much all deductions went away when they doubled the personal deduction (i.e. $16K for filing single and $24K for filing married and jointly). If I understand it correctly, you have to surpass that number before you can write anything off.

exp said:

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Why don't you guys just shut your freaking pie holes and let sleeping dogs lay.

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I don't want to get throw in jail for tax fraud so I called IRS to ask how I should declare all the miles and points that I accrue each year for work. The agent was very nice and explained that I should be in the clear but that he'd let me know if anything changes after he runs it up the flagpole all to the way to the very top! Y'all can thank me later - guilty consciences are the worst!

TXAGBQ76 said:

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I thought based on the new tax laws unreimbursed business expenses were no longer deductible. Basically pretty much all deductions went away when they doubled the personal deduction (i.e. $16K for filing single and $24K for filing married and jointly). If I understand it correctly, you have to surpass that number before you can write anything off.

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Yep, unreimbursed employee business expenses are gone. If self-employed you are still good to go, but not if an employee.

IrishTxAggie said:

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newhowdyag2004 said:

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If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

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Book flight. Get receipt. Cancel within 24hrs. Get refund. Book with miles. Turn in receipt. Take deduction on the receipt....PROFIT

I am not an accountant.

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Called fraud and could be prosecuted. That's a serious answer.

Edit: no different from booking flight at Higher fare, get receipt, cancel, rebook at lower fare and turn in first receipt. That will also get you fired at a company.

Old RV Ag said:

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IrishTxAggie said:

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newhowdyag2004 said:

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If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

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Book flight. Get receipt. Cancel within 24hrs. Get refund. Book with miles. Turn in receipt. Take deduction on the receipt....PROFIT

I am not an accountant.

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Called fraud and could be prosecuted. That's a serious answer.

Edit: no different from booking flight at Higher fare, get receipt, cancel, rebook at lower fare and turn in first receipt. That will also get you fired at a company.

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TXAGBQ76 said:

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I thought based on the new tax laws unreimbursed business expenses were no longer deductible. Basically pretty much all deductions went away when they doubled the personal deduction (i.e. $16K for filing single and $24K for filing married and jointly). If I understand it correctly, you have to surpass that number before you can write anything off.

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Self employed can still take business expenses. Also, employees can still be reimbursed for expenses - they just can't deduct them.

pocketrockets06 said:

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There's existing IRS guidance indicating that CC rewards and FF miles are a rebate to the customer and therefore non taxable. That could change in the future but that's the way it is treated now.

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This is the correct answer.

IrishTxAggie said:

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Old RV Ag said:

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IrishTxAggie said:

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newhowdyag2004 said:

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If I take a trip for my business, use my CapitalOne miles to redeem and cover the cost of the flights, can I still claim the cost of the flights for a deduction?

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Book flight. Get receipt. Cancel within 24hrs. Get refund. Book with miles. Turn in receipt. Take deduction on the receipt....PROFIT

I am not an accountant.

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Called fraud and could be prosecuted. That's a serious answer.

Edit: no different from booking flight at Higher fare, get receipt, cancel, rebook at lower fare and turn in first receipt. That will also get you fired at a company.

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Oh I got you were joking but I've seen too much in my life so I know some bozo would take it seriously. I'll admit to being Superman but you have to keep that secret.