Originally Posted by
jsnydcsa
Cost = 50K *.025 * 1.075 + 30 = $1373.50 *2 = $2,747.00
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Could Mrs. jsnydcsa and I, with our 100k in each of our accounts from the buy option, then gift each other 50k ending up with 150k in each account?
E.g. 100k in each account (after buy)
- 50k gifted to other person
= 50k remaining in each account after gift
+ 50k gifted from the other person
+ 50k bonus coming with the 50k gift
=
150k balance
Cost $567.50 * 2 = $1,135
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Total cost = $5,017 for 400,000 miles (not 500,000 b/c we had 50k *2 when we started out)
That's 0.0125 per mile. Not bad in my book.
"Gift" =/= "Transfer"
The cost for gift is $1373.75 instead of $567.50.
"Gift" actually means you buy miles for others, NOT transfer.
One question if anyone can clarify, transfer 50k cost $567.50 or $530? (Does transfer appply to 7.5% tax?)
[Edit: It seems the cost is $567.50 instead of $530]