FlyerTalk Forums - View Single Post - Taxes on AA Miles Prize
View Single Post
Old Mar 31, 2011 | 1:04 pm
  #30  
FWAAA
FlyerTalk Evangelist
 
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Originally Posted by fastflyer
At least with art, the actual cost basis can be years or generations in the past.
The general rule is that you can deduct the FMV of capital gain property but the lesser of FMV or basis for ordinary income property. Art held for years or generations sounds like capital gain property.
FWAAA is offline