I don't think it would be accepted to compare it to the cheapest domestic fare and say 25000 miles is only worth a hundred bucks. But you might look at say 20 domestic fares from your home, then average them and say that is worth 25000 miles. Say the average is 250 per RT, that would be a penny a mile. That seems reasonable.
If people are paying over two bucks for a box of cereal to get 100 miles, and then throwing the cereal away, a mile is worth at least two cents to them.
Originally Posted by Marathon Man
I got a tax of $1 on every 1000 miles I earned from Sprint. 50,000 miles would have been $500 bucks.
Now, they gotta report to the same IRS... why is it so different?
MM
MM, I don't follow. Do you mean you are taxed as if you got $1 in income? I don't know how Sprint would be different than credit cards or other reward programs,
but in any case, you are paying for phone service. You are probably paying more than if you did not sign up for the miles (I'd almost guarantee), so you are buying miles, but obviously cheaper than if you bought them from the airline..