Originally Posted by
Non-NonRev
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In most cases, the fare used to calculate the taxable value is the full Y fare.
Here's how it worked for me back in my nonrev days on CO:
Say that the Y fare for the trip in question is $1000, and that the employee pays a $100 fee for the pass.
$1000 - $100 = $900. 10 percent of $900 is $90.
$90 worth of income (imputed income) was added to the amount reported to the IRS.
Therefore, if I were in a 33% marginal tax bracket, I would owe the IRS an additional $30 at tax time.
As the employee, the pass I provided to you eventually cost me $130 out-of-pocket.
On AA its different. Flying D3, all margins are set seperately regardless of what class you are trying to fly standby. Now the $130.00 (I assume to GIG)
that was quoted would be nice, but its signifacantly higher in Y. While i wont
digest exactly how much (propriortery info) it is, the calculations
quoted by Non Non-Rev for CO does not apply to AA.
The same buddy who works for AA who is giving you the passes?
Is this the same buddy going along with you on the trip??? He wouldn`t
be flying D3 (Passes) but flying D2 or D1. So him trying to cash in on
2 passes to possibly pay for his own trip doesn`t make any sense.
Anyway thats about as much as i can say. Have a good trip