Another article about the Citi 1099s, with quotes from a law professor who authored a treatise on tax law:
New: Taxation of Frequent Flier Miles
http://www.forbes.com/sites/baldwin/...t-flier-miles/
He weighed in on FMV:
Worse, the bank evidently came up with the lavish valuation of 2.5 cents a mile. Ridiculous, says Dominic Daher, co-author of a West hornbook on tax law and adjunct professor of taxation at the University of San Francisco; the fair market value of miles is more like a penny each.
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While this professor explains how to adjust your return to this penny per mile FMV, there is nothing in the article about
why this FMV of a penny is reasonable. I think there is a good argument to make for a penny per mile FMV, and I wish we had seen it here.