Originally Posted by DevilBucsFlyer
They could charge $5.00 per mile and probably find some idiots to buy them. That doesn't mean that they have a value of $5.00.
I have to disagree. This is the very definition of value.
Originally Posted by dhuey
To support your lower valuation for the FMV of the miles, you might cite the example of
www.officialpayments.com. For years, both Delta and United have offered double miles on tax payments through this middleman. They charge a "convenience fee", but what this really comes down to is you are buying miles for about 1.23 cents per.
I think you'd be laughed out of the office for trying this. You could also claim that since one Visa gives you 1 mile per dollar, while another gives you 1 cent per dollar, that miles are worth 1 cent per mile. Or, if you played Delta's Dash to the Gate, that miles are free since airlines give them away. If you get audited and try this, I'd be willing to bet you get slammed with additional penalties - the IRS has no sense of humor.