FlyerTalk Forums - View Single Post - Tax Court rules some MS now taxable
View Single Post
Old Feb 25, 2021, 5:13 am
  #2  
radonc1
 
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 6,374
Originally Posted by Klemhuzzah
In 2013-2014, a couple did over $6 million in spend and made about $300,000 profit at 5%. IRS says pay up.

DOC: Tax Court: Cash Reward Profits from Credit Card Manufactured Spend could be Taxable - Doctor Of Credit

Miles to Memories: Credit Card Rewards Are Partly Taxable Per New Court Case (milestomemories.com)

I don't think anyone doing a few hundred thousand in spend has much to worry about. But I thought I'd start a post about it because it's in the news, and I don't want it to take over other threads (already saw it start to be discussed in at least one thread)
The real unanswered question for us from the IRS is..........
"How much is too much".

If I were a whale who had been doing 7 digits of spend a year for the past 6-8 years, I would be concerned.
radonc1 is offline