Originally Posted by
flightmedic
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.
Most businesses I have had insight into usually do not want to create any IRS interest directed towards something like this. I counseled a friend to quit MO from *now dead I think* the BofA mileage debit card because risk outweighed gain...