oliver2002

Alternatively, would you like some stranger get your FFP details after a blogger passed on your SWU???

Adam1222

I think it's just weird that someone who purports to be the expert in flying First for low cost, and takes tax write offs for doing so, relied on a reader for doing so.

from a tax perspective, he should of course note this as income.

iadisgreat

It's part this and part that clearly he doesn't need reader hand outs to fly in the style to which he has become accustomed. Long time readers of the blog should easily be able to remember when he would 100% had given it away based on some sort of contest.

It's for whatever reason uncouth (to me).

FallenPlat

As a long-time reader -- a fact I've proven many times here -- I can say definitively that the last two posts are wrong.

Well, maybe kind of wrong.

First, Ben has obviously done many contests indeed over the years, but he has also benefited from reader favors as well. Every reader of these words knows of the Big One -- yeah, the G-IV trip -- but there've been a lot of smaller ones as well. For years he got comped up to Ambassador status at Four Seasons, back when that was possible, thanks to a reader. Sometimes, in other words, the logistics or the program rules preclude a contest.

(A question for you experts out there: could an AA SWU be given away in a for-profit blog contest consistent with AA's rules? I'm curious on that one and, sadly, I've never even seen an SUV and so haven't read the T&Cs. I know for sure they can't be sold.)

Second, it's been my misfortune, professionally, to have a lot to do with tax stuff. Over many, too many, years. And, trust me, a gift isn't "income," not in this world anyway, not now not ever. Whether something Ben gets really is a "gift," factually, is of course something for him to know and for the rest us to wonder about. Personally, I'm of the view that life is way, way, way too short to spend even one unnecessary nanosecond thinking about tax law.

iadisgreat

Great opinion!

Adam1222

A gift can most certainly be taxable, particularly in a situation like this where the gift is used to generate income. I'm not sure what makes you think otherwise. But more importantly, we are talking about business taxes, not personal taxes, and the question of how he treats it on a balance sheet is valid. My very short comment referring to it as reportable income was a bit of an oversimplification

If Ben would have paid to upgrade, he would have written it off as a business expense. I don't know how Ben does his taxes, but suspect that trips with Ford are deducted as expenses, incorrectly.

As for your holier than thou comment, you obviously do spend more than a nanosecond thinking about tax law, since you felt the need to weigh in. But it's not a coincidence that both TPG and Ben establish "residence" in Florida. It's for tax purposes.

oliver2002

AA is absolutely against any trade of their upgrade instruments and watches any such transactions like a hawk on social media. BArea/HOM/VFTW/OMAAT are well aware/aligned with AA management to know what they can and cannot do.

TMM1982

It took the government how long to catch on to Madoff and Enron?

Pretty sure Ben has nothing to worry about.

Raffles

You should feel sorry for Ben.

Remember that the US is the ONLY country in the world to tax you on global income. (Apparently North Korea may also do this but it is not fully clear. Certainly no-one else.)

If I lived Ben's lifestyle, as a UK citizen, I would pay no income tax at all because I would not be in any one country for enough days to trigger it. Loyalty Lobby may be the only nomadic blogger who actually lives tax free - I think Drew and Carrie are US passport holders too.

RTW1

It's hardly as simple as your statement applies. Plenty of rules and agreements to avoid double taxation and also to determine where you should pay taxes when you travel the world....

TMM1982

which other countries don't have

iadisgreat

What does having a randomization based contest have to do with trade of an instrument?

oliver2002

I'm no lawyer, but AA makes it very clear:

Ben doing such raffles/giveaways potentially endangers his and the giveaways sponsor's AA account.

iadisgreat

TPG gave away a certain number of miles to "make up for" a free flight they accepted (contrary to their own policies), so obviously giving a SWU or miles away for free (say in a randomized contest based on comments) would be allowed.

runfit

Pretty positive he purchased those to give to the winner, something that AA encourages and has an option for with their Buy/Gift/Share (plus it was a promo period).