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Originally Posted by mikesyr18
(Post 30758988)
The difference is Chase doesn't have the other five problems on top of it.
Originally Posted by mikesyr18
(Post 30757515)
I could only wish people would get tired of AMEX's rewards shenanigans and just drop them.
It's already bad enough that: 1) Rewards are delayed an additional statement. 2) Citi and Chase now have JetBlue as a 1:1 transfer partner while AMEX sits at 250:200. 3) AMEX makes you pay the federal excise tax when transferring miles (nobody else does this). 4) AMEX has been hit or miss on dining bonus categories. 5) AMEX's bonus exceptions when applying for a card "because you've had too many opened AMEX cards recently," and sometimes denying bonuses when the box doesn't pop up for whatever reason. 6) And now taxing referral bonuses. 2) Ok, I've never flown Jetblue, but good to know I guess. 3) Only for US airlines, and if you're burning MR points on Delta, Jetblue, or Hawaiian... As one of my friends on reddit has said, this fee is Amex's way of telling you you should be transferring MR elsewhere! 4) Fair complaint. Not one that's really impacted me, but a fair complaint. 5) Amex has made it pretty clear they're tired with churners/unprofitable or likely to be unprofitable customers. Can't say I blame them. Would you engage in a business relationship that would more than likely wind up being a loss to you? |
Originally Posted by shoodawg
(Post 30756043)
AMEX chat rep just mentioned those not in receipt of a 1099 by 1/31/19 should not expect a 1099.
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Out of interest, how many people are accepting the valuation Amex has placed on these referrals and are paying tax on them and how many are changing the valuation to 0 and not paying tax? Based on the legal advice in the link posted a few posts up, it seems like a pretty easy case can be made for changing the valuation to 0 and thus having no tax liability.
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Originally Posted by Enigma368
(Post 30987466)
Out of interest, how many people are accepting the valuation Amex has placed on these referrals and are paying tax on them and how many are changing the valuation to 0 and not paying tax? Based on the legal advice in the link posted a few posts up, it seems like a pretty easy case can be made for changing the valuation to 0 and thus having no tax liability.
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Originally Posted by dhuey
(Post 30991379)
That sure wouldn’t be my legal advice to a client. Even a penny per would be a very aggressive position. We’re it my return, I’d go with 1.4 or 1.5 cents per. A commenter at OMAAT asked how the member has income when Amex’s own T&Cs says the points belong to Amex. Fair question, and I think it goes back to my earlier point about valuing the points. This just seems to further suggest that points have a lesser value when issued. They don’t belong to you, and you can’t sell or barter them. Taken together, I think this makes the strongest argument for using a lower (or even zero) valuation. |
Originally Posted by Enigma368
(Post 30991438)
It wasn't so much as advice, as a description of a position some people are taking. Amex have it in their terms that all membership rewards points in your account technically belong to Amex, so the line some people are taking is that since they legally do not own the points awarded through a referral, they do not need to pay tax on them.
Source: https://www.travelcodex.com/amex-ref...ractical-tips/ |
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