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Old Feb 7, 2012 | 5:21 pm
  #201  
Ambraciot
 
Join Date: Jun 2011
Location: BOS
Programs: AA EXP
Posts: 7,710
Originally Posted by CollegeFlyer
It's not income, though. The IRS has specifically said that. I highly doubt that the value of the frequent flier miles you earn on a paid airlnie ticket can exceed the purchase price by a significant margin, unless you're buying a bunch of $1.00 mistake fares.
Feel free to argue that point here: http://www.flyertalk.com/forum/milea...iscussion-627/

However I was talking about free upgrades in addition to earning miles. Plats and Golds who buy stickers usually pay more to upgrade on my flights than I do to fly them, so the market value of the upgrade exceeds the value of the ticket.

Originally Posted by CollegeFlyer
And even if the IRS somehow came up with a way to call it a "gift" from the airline, gift tax is charged to the giver, not the recipient.
You must never have accepted a corporate boondoggle or promotional trip.
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