I hope you have a really big shoe box. Between the plastic and paper I go through each year, I'd need a few file cabinets and a Dewey decimal system to keep track of it all. The bureaucrats can make life hell for anyone, but they've got bigger fish to fry than someone scrimping together a few first class tickets each year.

If you are doing that big volume, I am sure you can afford a small file cabinet.

I'm small time compared to others on here. A shoe box should last me a year, I've got plenty of extra shoe boxes. PM me if you need one ;). No extra file cabinet needed. Maksimfa, nice to see you are sticking around on FT, I thought you were bailing to start a private group.

I got my 2nd bluebird recently, so am all set to load 10k per month on 2 BB. I am planning to do 2 5k transactions per month. Has anyone done this regularly month after month? Do I need to put this on 2 or more credit cards from different issuers to be safe? There is only 1 CVS in my area, and even that is a little far from me, so I can't take the time to do multiple 1k transactions to stay very low under the radar, but is this plan asking for trouble?

Let me start by saying I worked at the IRS for 32+ years and 9 of those were as a revenue agent (someone who audits tax returns of businesses and fairly wealthy people).

Where you got your misleading, and in some cases, false information, I have NO idea. The IRS does NOT require a receipt for anything except hotels, airline and rail tickets, and other travel expenses (and only those that exceed $75 each).

There is no similar rule for buying VR cards. The rule that applies in other cases is called the "Cohan Rule," where reasonable estimates are allowed, but that's for business expenses. You are NOT in a business although you could be classified as one if you buy a huge amount of VR cards on a regular basis and make money off the credit card purchases. In that case, it would be wise to keep the receipts and your credit card statements. But having the receipts is not an absolute must.

If I audited you and wanted to know where all these deposits were originating in your BB account, I'd ask you to show me your receipts OR credit card statements showing a purchase at or near the time of the BB deposit. That would be sufficient proof of the source of those deposits. The burden of proof is on the taxpayer to prove expenses, but it's on the IRS to prove unreported income. If you happened to have your receipts from CVS (or some other store), that would even be better.

If a different revenue agent wanted to play hardball and demanded the receipts, you could ask to see his manager and, if that didn't work, appeal the case to the IRS Appeals Division. They certainly would never pursue such a case by letting you go to the Tax Court solely because you didn't keep your receipts!

^ Great info. Thanks

Putting ALL of your purchases ($120K per year) on ONE CC is just plain foolish, You'd probably get a fraud alert early on for departing from your normal pattern of purchases and then later a financial review inquiring about your sources of income. That could easily lead to a shutdown by the CC bank (although BB couldn't care less, unless you are trying to link a gift card to your BB account). It all depends whether you are earning $100K per year or $1M per year. You'd skate away without an issue if your income was $1M but not if it was only $100K. Some on this board will say they do spend easily $120K or more and have annual earnings of far less and nothing happened to them. It's sheer luck in that case. I'd rather stay under the radar.

I think a lot of MSers do not think things through from the CCs perspective.

For a few of my cards, I have had long conversations with CS on the recon. line. This has given me a much better idea about how they view my credit history, number of cards and credit available, and outstanding debt relative to my income and payment history. I have long term objectives and want to maintain good relations with everyone involved in my MS.

Yes I agree, running 120k a year is a lot for 1 cc. So what is the wisdom here? Only run 30k per year total?

Or run 30k per year per card issuer - split between chase, amex, bank of america, citi?

FYI - Scanning receipts and saving the files on your computer will save you a lot of shoeboxes. For me, I'm more than willing to throw the receipt into the scanner each time so I'll have the VR card #, date of purchase, last 4 digits of my CC, and anything else I might need for Incomm, MVD, the banks, IRS, or whoever else comes knocking in the future.

It's less about trying to convert those who just refuse to keep records, but more about letting newer MS'ers know about their options.

I think about 6 receipts could fit on a scan. Someone could get a day's worth of receipts on a scan.

Definitely split your purchases among at least 4 cards. But you can't deposit more than 72K per year in a BB account. That's 60K from Walmart/VR combined and 12K from a real debit card tied to your bank account.

Having 2 BBs in one name will get you shut down. Don't do it! And never put your own money in a relative's BB account. What happens if they pass away and the money is frozen in probate? Or they turn on you and keep your money? Don't laugh. It happens a lot.

4 cards or 4 banks?

I don't think one can have 2 BBs under the same name/ss#. I've never heard of anyone successful.

I have some of my own money in my SO's BB account. I set it up and she doesn't even know the login or password. I only takes a few seconds unload the account if we ever split up.

I thought it was clear from the context that I meant 4 credit cards. The number of banks is of lesser importance. You could have 2 different Amex cards and 2 from Chase, for example.

^

Speaking of FR, I just got a letter from BOA today referencing such a request. For a card that has a CL of, wait for it: $200. I kid you not.

Brought attention to myself when I asked if I could have the $600 from a CL of another BOA card (CL:$7600) added to the first one because, as I explained to the rep, it's practically useless. Well, it does hold a space in the 0% category of the credit card for utilization, but I digress.

Off Topic: 2013 tax bill. http://www.flyertalk.com/forum/omni/...ou-must-2.html

We owe $2500. I am going to put $6500 in IRA for a couple over 55. I am going to look into putting down the local sales tax not just the state. Would you have any other idea for me? Thanks for entertaining.