Originally Posted by
sun_aa
With 40% marginal tax rate and 200k in BD you are getting a better value when you value miles at 1.56cpm or more.
AA miles yield far more than 1.56 cpm for us, even in coach just fyi. It all depends on your travel pattern and how well-versed you are when using the miles. Our last 4 coach redemption each would yield at least 3 to 5 cpm if we purchased those tickets. 2 of them actually out of necessity - one-way home from Europe, literally May of each the past 2 years - 20K off peak coach award that would cost over $1,500 to purchase.
Needless to say, many who put $200K or more at BD are not just for redeeming a coach award, even to international destinations. How about a J OneWorld award to fly 25K miles up to 16 stopovers sounds to you? That would cost 150K AA miles. Or, 130K to fly only 20K miles. Some folks actually pay to fly these kind of itineraries - just check out the OneWorld Forum - a great way to earn miles when combined it with an award to get you to the origination point where the fare would be the cheapest. Inevitably such origination points would be outside US. There are many ways to value AA miles, and one would yield a very wide range, all depends on how one uses it, naturally.
Originally Posted by
sun_aa
I am managing more than 8 accounts. Its not really that big a deal once you do the initial setup. You use technology for the grunt work. What's the extra work during tax time? Is there anything more than looking at the 1099's and adding up a dozen numbers?
Just to make sure all financial institutions to send you the 1099 in time is a task that not many are willing to pay attention to. lol.