Tax on transfering AmEx Miles then tax on using them - Double dipping?
Jul 17, 2005, 8:42 am
#1
Original Poster
Join Date: Jun 2004
Location: New York, NY
Programs: COPP/UAGS SPG Platinum, USAir Gold Hyatt Diamond, Amex Centurion
Posts: 270
Tax on transfering AmEx Miles then tax on using them - Double dipping?
Perhaps I don't understand what an "airline excise fee" is - $50 to transfer 200,000 miles - then I'll get him again when I use them, right? What's the difference?
Jul 17, 2005, 9:00 am
#2
Join Date: Jul 1999
Location: Land of 10,000 Upgrades
Posts: 9,465
Originally Posted by geekfactory
What's the difference?
The money you pay to Amex reimburses Amex (in part) for the excise tax it pays to the government when it buys miles from CO.
The taxes you pay when you acquire your award ticket are PFCs and security fees, and have nothing to do with federal excise taxes.
Jul 17, 2005, 11:34 am
#3
Suspended
Join Date: Nov 1999
Posts: 24,153
Originally Posted by geekfactory
Perhaps I don't understand what an "airline excise fee" is - $50 to transfer 200,000 miles - then I'll get him again when I use them, right? What's the difference?
Jul 17, 2005, 11:58 am
#4
Join Date: Oct 2004
Location: Clinging to the edifices of a decadent past from the biggest city in America nobody really cares about.
Programs: (ಠ_ಠ)
Posts: 9,077
Think of the children.
Forget Craz, transfer the points to the J.Edward's account and give yourself a pat on the back for helping out a needy student. Afterall, there is no gift greater than the gift of giving. 
Jul 17, 2005, 12:16 pm
#5
Original Poster
Join Date: Jun 2004
Location: New York, NY
Programs: COPP/UAGS SPG Platinum, USAir Gold Hyatt Diamond, Amex Centurion
Posts: 270
Originally Posted by UpgradeMe
Night and day.
The money you pay to Amex reimburses Amex (in part) for the excise tax it pays to the government when it buys miles from CO.
The taxes you pay when you acquire your award ticket are PFCs and security fees, and have nothing to do with federal excise taxes.
The money you pay to Amex reimburses Amex (in part) for the excise tax it pays to the government when it buys miles from CO.
The taxes you pay when you acquire your award ticket are PFCs and security fees, and have nothing to do with federal excise taxes.
How long after making the deposit until CO's 25% for AmEx miles promo kicks in? The miles showed up in, I kid you not, 3 minutes.
Jul 18, 2005, 9:23 am
#6
Join Date: May 2005
Location: IAH
Programs: UA Premier Gold, AA, Hertz, Avis, Marriott, Hilton HH
Posts: 372
Originally Posted by geekfactory
Perhaps I don't understand what an "airline excise fee" is - $50 to transfer 200,000 miles - then I'll get him again when I use them, right? What's the difference?
Membership Rewards points are not refundable once transferred.
You may only convert points into a participating program held by you or an additional Cardmember linked to your account.
You are subject to the Terms & Conditions of the frequent customer programs of the participating airlines and hotels.
Some restrictions and blackout dates apply. Please contact the airline or hotel directly.
OnePass terms and conditions apply.
For each point transferred into the Frequent Flyer program of a U.S. airline, a fee of $0.0004 per point*, with a maximum fee of $50, will be charged to your Card account. We charge this fee to offset the excise tax we must pay on such transfers. The fee may be more or less than the actual amount of the excise tax we pay on any individual transfer.
*The fee is $0.0004 per two points transferred for Membership Rewards Options enrollees.