Originally Posted by
Efrem
The limit is mostly to keep people from buying miles to use for international F/J awards, where the fare is usually much higher than miles for an award would cost.
i.e. The airlines make an effort to prevent doing exactly what the OP wants to do. @:-)
I imagine that the airlines also have a vested interest in keeping miles non-taxable. It's a lot easier to peg a taxable value to 100k miles transferred in a single transaction. On AA, you can redeem 100k miles for a RT first class domestic ticket or a 1-way Business class fare to Europe with no blackout dates, so that is easily and immediately worth thousands of dollars. In the eyes of the IRS, is this really that different from someone giving you a $1000 or $10,000 AA voucher? If it occurred on a wide scale, I'm sure the IRS would take notice.
On the other hand, if I collect 1000 points from 100 vendors, has any one of them given me anything of value? It would be hard to say that 1000 miles is equivalent to an AA voucher worth $10 or $100, even though the math scales that way.
Originally Posted by
lovetotravel
Buy retail and sell wholesale, is that what you are saying or did I misunderstand???
LOL! Didn't even see the gaping hole until you pointed it out!
