If I earn frequent flier miles from my business credit card and use them for personal use, are they taxable? I can't seem to find an IRS ruling on the subject that is less than 5 years old.
2007-03-02 04:12:27 · 5 answers · asked by pyjamarama 2 in Business & Finance ➔ Taxes ➔ United States
No, they are NOT taxable unless you convert them to cash.
Here's a link to one of the IRS announcements on the issue: http://www.irs.gov/pub/irs-irbs/irb02-10.pdf
2007-03-02 04:23:38 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
the money is taxable if the underlying purpose became a company use that became already deducted on your tax return. For sensible subject concerns, the IRS purely considers universal flyer miles earnings in case you sell them. Even IRS workers can shop the miles now.
2016-10-17 02:41:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
They aren't taxable, since they're considered a partial rebate on money that you paid out for the original tickets, rather than something the airlines gave to you.
2007-03-03 02:35:42 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
No, they aren't.
As far as Zap's comment, there are LOTS of things other than money that are taxable as income. Almost anything that has a quantifiable monetary value is potentially taxable. Of course, if you weren't aware of this, you wouldn't have asked this question.
2007-03-02 05:02:54 · answer #4 · answered by Rob D 5 · 2⤊ 1⤋
No, only monetary earnings are taxable.
2007-03-02 04:15:55 · answer #5 · answered by Anonymous · 0⤊ 3⤋