Tax Payments for Miles
May 4, 2006 | 1:24 am
#1
Original Poster
Join Date: Apr 2006
Location: New York City/NY22
Programs: AA Platinum 2.3MM (Lifetime PLT)
Posts: 5,291
Tax Payments for Miles
My accountants gave me the bad news: I owe approximately $500,000 in taxes. If I go to Official Payments and pay them a 2.49% fee ($12,450), I will wind up with 500,000 Aadvantage miles. (Yes, I checked with the credit card company.)
Crazy idea or "go for it?"
All comments appreciated.
Please forgive me if this has been discussed before. I am a new member.
Crazy idea or "go for it?"
All comments appreciated.
Please forgive me if this has been discussed before. I am a new member.
Last edited by Landing Gear; May 7, 2006 at 10:04 pm
May 4, 2006 | 8:31 am
#2
Join Date: Sep 2005
Location: Corpus,TX
Programs: SPG-Gold, Amex-Plat., AA-Plat.
Posts: 370
Well I guess your half way to the spending of $1,000,000. which gives you
some kind of lifetime status. I don't know if you have to spend the 1 million
on the card in one year or not.
I got a big (I thought it was big until I read you post) quartly tax estimate
due this summer. I have been unable to find any bonus offers that are
still around. They all ended in April.
some kind of lifetime status. I don't know if you have to spend the 1 million
on the card in one year or not.
I got a big (I thought it was big until I read you post) quartly tax estimate
due this summer. I have been unable to find any bonus offers that are
still around. They all ended in April.
May 4, 2006 | 9:02 am
#3
Join Date: Jan 2005
Location: New York
Programs: AA Plat, CO Gold
Posts: 1,598
You don't list any info in your profile. If you do not have elite status, the number of miles you can earn is capped at about 60k per year.
It's true that on AA, 1 million lifetime earned miles will give you gold status for life. That said, I don't think this is anywhere close to worth it unless you have some pressing need for the 500k miles. If you have an Amex SPG card, that would be closer to worth it as 500k Starwood points are much better than 500k AA miles (including the fact that you could xfer the 500k Starwood points into AA and get 625k AA miles).
Also see this large ongoing thread on tax payments for miles here:
http://www.flyertalk.com/forum/showthread.php?t=527045
It's true that on AA, 1 million lifetime earned miles will give you gold status for life. That said, I don't think this is anywhere close to worth it unless you have some pressing need for the 500k miles. If you have an Amex SPG card, that would be closer to worth it as 500k Starwood points are much better than 500k AA miles (including the fact that you could xfer the 500k Starwood points into AA and get 625k AA miles).
Also see this large ongoing thread on tax payments for miles here:
http://www.flyertalk.com/forum/showthread.php?t=527045
May 6, 2006 | 3:51 pm
#4
Original Poster
Join Date: Apr 2006
Location: New York City/NY22
Programs: AA Platinum 2.3MM (Lifetime PLT)
Posts: 5,291
Originally Posted by acf573
You don't list any info in your profile. If you do not have elite status, the number of miles you can earn is capped at about 60k per year.
It's true that on AA, 1 million lifetime earned miles will give you gold status for life. That said, I don't think this is anywhere close to worth it unless you have some pressing need for the 500k miles. If you have an Amex SPG card, that would be closer to worth it as 500k Starwood points are much better than 500k AA miles (including the fact that you could xfer the 500k Starwood points into AA and get 625k AA miles).
Also see this large ongoing thread on tax payments for miles here:
http://www.flyertalk.com/forum/showthread.php?t=527045
It's true that on AA, 1 million lifetime earned miles will give you gold status for life. That said, I don't think this is anywhere close to worth it unless you have some pressing need for the 500k miles. If you have an Amex SPG card, that would be closer to worth it as 500k Starwood points are much better than 500k AA miles (including the fact that you could xfer the 500k Starwood points into AA and get 625k AA miles).
Also see this large ongoing thread on tax payments for miles here:
http://www.flyertalk.com/forum/showthread.php?t=527045
I am an AA Platinum and have about 800,000 to date miles. This will definitely put me over the 1,000,000 mile mark.
Thanks for the link. I will check it out now.
Last edited by Landing Gear; May 6, 2006 at 9:25 pm Reason: Typographical error