The preffered only has select charities at .125, groceries are at .1 for pyb

for the poster who asked why not just take cash, it’s bec I am greedy and want more money and know I can get it

my core question is - for those who have experience selling chase UR, will I get the same money if I sell from my preffered or if I get the reserve can I get more per point ?

thanks

Think everyone told you her/his opinion. Why don’t you contact brokers yourself?

unsubscribed

Not if you will be Transferring the points to an airline program. The transfer ratios are identical.

in the past, i would say it's the same. but csr can now redeem at up to 2cpp on chase travel but csp only up to 1.75cpp, i have no experience with miles brokers, but this could be a viable option for the brokers; less risk, more availability and while they may earn less per transaction, they could complete more transactions quickly, resulting is overall more payout. so csr points are technically more valuable even when selling to broker, but whether they will pay more for it is another matter

True, in an alternate scenario where the broker would ask free123cc to book a ticket for a stranger through Chase Travel, rather than transferring to an airline program. The broker needs to be able to sell the ticket for less than the airline's published price. The spread between $0.013 and $0.02 doesn't seem adequate, but I imagine that dynamic pricing of frequent flyer awards has already reduced the broker's margins.

Still, I wouldn't upgrade from Sapphire Preferred to Reserve on speculation. Let the broker tell you if there is a valuation difference, and exactly what you would need to do.

Everything INCLUDING the transfer to the airline is legit - Chase has no restriction on transfer to airline and offers it as a welcome option for redemption as long as the account is in the primary or AU cardholder's name so I agree that Chase has no reason to get involved here.

Where the OP can run into an issue is (as has been previously mentioned) when those miles that are in their name are used to book flights for random people and their mileage account gets flagged and shut down for doing too many third party bookings. This is rampant with AA, Alaska, Virgin, and others, and I'm sure more airlines are going to crack down going forward.

I wouldn't upgrade based solely on points boost of the Reserve and then relying on a broker giving more $$ for that. Perhaps would have done it to lock in 1.5cpp value on the CSR but it's too late for that now.

The best value for the OP to liquidate their points without needing to go through a broker or getting into trouble and violating any T&Cs is to book travel for other people (friends, family, co-workers, etc) on their Preferred via Chase Travel at a value of 1.25 cpp (or up 1.75 cpp if they're lucky) and those people pay the actual price which they would have paid anyway when booking themselves. There is no rule against booking travel for others using Chase UR points and they have more than 2 years to cycle through the points.

Thank you everybody for taking the time to answer and trying to help me

i sincerely appreciate it!

I will reach out to a broker directly and find out more

Make sure that broker does not issue you a 1099 when you get paid. And you will need to ask to have 2 separate checks, because depositing a check over $10k is going to trigger the bank to let government knows about it. If you end up paying tax on $12k, you maybe better off just taking the $9.5k.

Trying to evade reporting by making a series of smaller deposits is called Structuring, and that is illegal. Depositing large checks is not illegal.

Nonetheless, it's a valid point that cashing out credit card points is not a taxable event, but selling those points might be.

Not usually, but there was the case a few years ago, where the couple made hundreds of thousands off of buying Visa gift cards and cashing them out. I believe the final ruling was they werent actually getting a rebate on their purchase so it was taxable

Rebates are not taxable.

Right, but the ruling was that they were NOT (werent = were not) getting a rebate so therefore it was taxable.

Which is exactly why they lost. They bought $5m worth of Visa GCs, liquidated them with Money Orders, and used them to pay off the bill. Therefore, they didnt actually receive a product, so there was nothing to rebate against. It was pure points.

I just want to get clarity on the UR redemption options. If I do cash back of 500k = $5K as a direct deposit to my checking account , there will be NO 1099 or tax liabilties ? I tought I read that Chase had sent out some 1099s for this in the past. Also does this cash back option still apply to the new echanced / increased fee updated card ?

You never get a 1099 on redeeming points.

If you do a lot of referrals and/or get rewards with no spend required, you might get a 1099.