Originally Posted by
Syzygies
I'd get a good tax lawyer before giving up such a prize. What the airlines charge to buy miles outright bears little relation to how we value the miles.
I decide whether to use miles or cash for family member tickets, using a valuation of 1.2 cents/mile. That would value this 100K prize at $1200.
+1
Just because an entity 1099's you (or threatens to 1099 you) for an amount, doesn't make it legit.
If it's cash, it's one thing. But on an item, there's discretion.