FlyerTalk Forums - View Single Post - Offloading gift cards yourself? Get your own merchant account?
Old Jun 24, 2014 | 8:09 am
  #6  
flightmedic
15 Years on Site
 
Join Date: Dec 2006
Posts: 501
Just speculating. If the "business" purchases the gift cards with the "business" credit card then the expense is a business expense. When you deposit the gift cards into the business account your profit is calculated by subtracting your "sales" from your expenses. You would not have a profit on which you would have to pay tax. I don't know how you could structure this to avoid paying sales tax on your "manufactured" sales.
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