Originally Posted by
RedSun
You still do not get it.
You can do an experiment and hire 10 different tax accountants to do your tax return. I figure you'll get 10 different answers. Some can be very different. Probably none of them will sort out your MS activities.
As several people here have said, folks all working to optimize their CC spending. If the spending is well within regular budgets, then no one can say organic spending is MS. But if someone runs $1MM to $5MM a year through their CCs, then it is a problem. Clearly OP stated those cases.
But if you want to pay tax on your maximizing your $1,500/quarter Chase Freedom spending, you sure welcome to do that. I'm not a tax accountant to advise you.
Oh yes I do.
The sole question is whether a given transaction generates income. If it does, that income is taxable. Whether that treatment generates a tax liability and, if so, how much, depends.
But, whether an item is income does not depend on its size. For that, you are referring to the question of whether you are going to get caught.