How to prepay $30,000 in air travel for tax reasons? Help needed
Jul 11, 2016, 9:00 am
#1
Original Poster
Join Date: Jun 2005
Posts: 31
How to prepay $30,000 in air travel for tax reasons? Help needed
Hello all,
Your help with this tax reduction situation would be greatly appreciated. My company is having a good year, and to reduce profits, my accountant suggested that I prepay for air travel. I usually fly American or Delta - I live in Miami.
I'm wondering the best way to prepay $20,000 to $30,000 in air travel with one of these airlines and hopefully, get some extras for doing so (in addition to the tax savings).
I looked into the American AirPass, but I do not fly that much in a single year and I do not fly last minute or make frequent changes to my tickets.
Any creative solutions would be appreciated!
Your help with this tax reduction situation would be greatly appreciated. My company is having a good year, and to reduce profits, my accountant suggested that I prepay for air travel. I usually fly American or Delta - I live in Miami.
I'm wondering the best way to prepay $20,000 to $30,000 in air travel with one of these airlines and hopefully, get some extras for doing so (in addition to the tax savings).
I looked into the American AirPass, but I do not fly that much in a single year and I do not fly last minute or make frequent changes to my tickets.
Any creative solutions would be appreciated!
Jul 11, 2016, 9:05 am
#2
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,958
You could buy (example) AA giftcards (maximum denomination $1,500). This might, or might not, qualify as an expense for tax purposes - ask your accountant.
https://giftcards.aa.com/terms.jsp
https://giftcards.aa.com/terms.jsp
Jul 11, 2016, 9:19 am
#3
Join Date: Jan 2001
Posts: 2,838
If you purchase fully refundable tickets as far out as possible, you can change them as you wish. This doesn't give you a discount, put essentially prepays. If you have status in programs that waive change fees, they don't even need to be refundable.
Jul 11, 2016, 9:24 am
#4
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,575
Do any airlines front you the status when you prepay a certain amount?
I remember a few years back seeing an ad where you'd buy $10k-20k in United travel upfront and you'd have an elite status (I think Premier Executive at the time) while you traveled. Of course it was for 1 person only - you couldn't just buy $20k for your office - and I don't *think* you could prepay a 1K level, but I could be wrong.
Figured if United did it, then decent chance AA or DL also did it.
Anyone else remember this or know if it is still a possibility?
Perhaps a moot point if OP is already high-tier on any airline he'd want to fly...
I remember a few years back seeing an ad where you'd buy $10k-20k in United travel upfront and you'd have an elite status (I think Premier Executive at the time) while you traveled. Of course it was for 1 person only - you couldn't just buy $20k for your office - and I don't *think* you could prepay a 1K level, but I could be wrong.
Figured if United did it, then decent chance AA or DL also did it.
Anyone else remember this or know if it is still a possibility?
Perhaps a moot point if OP is already high-tier on any airline he'd want to fly...
Jul 11, 2016, 11:04 pm
#5
Join Date: Mar 2000
Location: Santa Cruz, CA USA
Programs: AA, UA, WN, HH, Marriott
Posts: 7,290
United has a program called Pass Plus, in which you prepay for travel, and this is exactly what you say you are looking for. However, I am not aware of a similar program with either AA or DL, but you could call them and check.
Jul 11, 2016, 11:17 pm
#6
FlyerTalk Evangelist
Join Date: Jun 2005
Location: QLA
Programs: SBUX Gold
Posts: 14,507
AirPass landing page
Jul 13, 2016, 5:11 am
#8
Join Date: May 2004
Location: Home
Programs: AA, Delta, UA & thanks to FTers for my PC Gold!
Posts: 7,676
Another similar thread on prepay travel expenses but for hotel stay not too long ago. You may find some creative ideas from the discussion though:
http://www.flyertalk.com/forum/trave...tel-stays.html
http://www.flyertalk.com/forum/trave...tel-stays.html
Jul 13, 2016, 8:50 am
#10
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
UA having this makes it different from others >
have to negotiate these things, and these are not large amounts of money
The option to renew or extend United PassPlus funds at the end of the contract period (Service charges may apply)
Jul 13, 2016, 8:59 pm
#11
Join Date: Jul 2016
Location: Upper U.S.
Programs: AA EXP x 1.5, DL GM, JB, HH GLD
Posts: 145
You could buy (example) AA giftcards (maximum denomination $1,500). This might, or might not, qualify as an expense for tax purposes - ask your accountant.
https://giftcards.aa.com/terms.jsp
https://giftcards.aa.com/terms.jsp
Last edited by beckoa; Jul 13, 2016 at 11:21 pm Reason: merged consecutive posts