<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pynchonesque:
FF miles are not taxable when received from FF programs (see IRS Announcement 2002-18). That reinforces the notion of you having no cost basis in them.</font>
Funny, but I could have sworn I saw a tax on my FF miles when renting a car in SAN back in the summer. While I wouldn't be inclined to sell miles or tickets in any form, this tax must muddy the waters of the argument that the miles are "free", yes?