Originally Posted by
1k650
I am thinking of exchanging it for a non-refundable ticket, and then cancelling the latter. This way, I will have a non-refundable credit (albeit with a penalty of $250) which I can use later.
Tax reasons or not, I don't see why you would do the above when you can just cancel the reservations on the original refundable ticket and leave the value sitting out there. You can re-use it as credit for a later flight without having to go through the intermediate step of ticketing a non-refundable ticket that you don't intend to use and paying $250 to change.