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Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping

Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping

Old Jul 17, 09, 12:52 pm
  #2896  
 
Join Date: Jan 2005
Location: San Antonio, TX
Programs: OP, SPG, Amex MR
Posts: 314
Originally Posted by HLS2002 View Post
I stand corrected. Penny Arcade at TD Bank (nee Commerce Bank) has a very low capacity for dollar coins, but many banks appear to have more accommodating machines. I dumped a couple hundred in a machine at a PNC Bank with no trouble. Actually, that machine sounded like it was eating the coins.

If anybody is from San Antonio, TX, you can use the Frost bank in downtown. It has a heavy duty coin counting machine. It will take 2000 coins before the teller has to change the bags. I can count my $2000 in under 2 minutes and I am out of the bank in under 5 ^
smcgrath12 is offline  
Old Jul 18, 09, 12:26 am
  #2897  
Moderator: United MileagePlus
 
Join Date: Oct 2004
Location: Clinging to the edifices of a decadent past. (IAH, DEN, YKF)
Programs: (ಠ_ಠ)
Posts: 8,963
Looks like the NA coins are back -- earlier today the mint shipped out my order with a deilvery date of Monday.
J.Edward is offline  
Old Jul 18, 09, 9:53 am
  #2898  
 
Join Date: Nov 2008
Programs: HH Diamond, SPG Gold, Wyndham Plat, Hyatt a lot of points.
Posts: 112
Originally Posted by smcgrath12 View Post
If anybody is from San Antonio, TX, you can use the Frost bank in downtown. It has a heavy duty coin counting machine. It will take 2000 coins before the teller has to change the bags. I can count my $2000 in under 2 minutes and I am out of the bank in under 5 ^
Sounds like a great machine. Next time you're in the bank , could you see if there is a visable name plate on the machine, and share that with us.
It would be easy to open my local Yellow Pages and call around town. " Do you have the X-3000 Heavy Duty Coin Counter , available for customer coin use?"

side note , ordered NA july 15th shipped july 17th
TheRoadIsLife is offline  
Old Jul 18, 09, 11:05 am
  #2899  
 
Join Date: Jun 2003
Location: san francisco.
Programs: Marriott Plat, OW Ruby
Posts: 1,596
Question Income tax liability?

Sorry if its been answered already, I tried a search but couldn't find an answer..

How do you avoid having these purchases increase your tax liability to Uncle Sam?

Thanks for any replies^
tattikat2 is online now  
Old Jul 18, 09, 11:15 am
  #2900  
 
Join Date: Mar 2006
Posts: 1,629
why would they increase your tax liability?
crabbing is offline  
Old Jul 18, 09, 11:17 am
  #2901  
 
Join Date: Jul 2003
Location: WAS/ Silver Spring, MD,USA
Programs: UA/AA
Posts: 850
Originally Posted by tattikat2 View Post
Sorry if its been answered already, I tried a search but couldn't find an answer..

How do you avoid having these purchases increase your tax liability to Uncle Sam?

Thanks for any replies^
how would your tax liability be increased ? You are simply making a purchase. There is no profit or capital gain involved.
Paiteaw is offline  
Old Jul 18, 09, 11:17 am
  #2902  
 
Join Date: Jul 2005
Posts: 3,057
What tax liability? Buying the coins is like getting 2 $10 bills for a $20. You aren't getting any extra money. At most maybe someone could argue you need to pay tax on the miles you earn.


Originally Posted by tattikat2 View Post
Sorry if its been answered already, I tried a search but couldn't find an answer..

How do you avoid having these purchases increase your tax liability to Uncle Sam?

Thanks for any replies^
ClimbGuy is offline  
Old Jul 18, 09, 12:52 pm
  #2903  
 
Join Date: Mar 2003
Location: Independence, MO USA
Programs: AA LT Gold & Marriott Gold
Posts: 275
Originally Posted by ClimbGuy View Post
What tax liability? Buying the coins is like getting 2 $10 bills for a $20. You aren't getting any extra money. At most maybe someone could argue you need to pay tax on the miles you earn.
The IRS has already determined that acquiring airline miles is not a taxable event. Although the following IRS anouncement is directed towards mileage earned thru business or offficial travel, the same rule applies to personally acquired miles. Don't get hung up on the last sentence "for tax avoidance purposes", we aren't doing that. This is a hobby for most of us and if you want to take it to the exteme, we are buying a product and selling a product for the same price, thus there is no profit, therefore no tax. For those who had thought about writing off their expenses, you can't take a hobby loss against other income. Yes, I am a tax pro and am not worried about what the IRS thinks of our hobby.

Announcement 2002–18

Most major airlines offer frequent flyer programs under which passengers accumulate miles for each flight. Individuals may also earn frequent flyer miles or other promotional benefits, for example, through rental cars or hotels. These promotional benefits may generally be exchanged for upgraded seating, free travel, discounted travel, travel-related services, or other services or benefits. Questions have been raised concerning the taxability of frequent flyer miles or other promotional items that are received as the result of business travel and used for personal purposes. There are numerous technical and administrative issues relating to these benefits on which no official guidance has been provided, including issues relating to the timing and valuation of income inclusions and the basis for identifying personal use benefits attributable to business (or official) expenditures versus those attributable to personal expenditures. Because of these unresolved issues, the IRS has not pursued a tax enforcement program with respect to promotional benefits such as frequent flyer miles.

Consistent with prior practice, the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer’s business or official travel. Any future guidance on the taxability of these benefits will be applied prospectively. This relief does not apply to travel or other promotional benefits that are converted to cash, to compensation that is paid in the form of travel or other promotional benefits, or in other circumstances where these benefits are used for tax avoidance purposes.

Last edited by gejone; Jul 18, 09 at 1:08 pm Reason: Added the Announcement
gejone is offline  
Old Jul 18, 09, 2:38 pm
  #2904  
 
Join Date: May 2008
Location: SFO
Posts: 843
ok here's my value subtracted question... has anyone had any shipping problems with the usmint / UPS ? one of my orders never showed up and UPS shows "billing information received" and claims they never picked up the box from the mint, while the mint claims it was shipped. kind of a nightmare, but at least it's only $500 worth. i have been on the phone with the mint a lot and have the name and extension of one person so i don't have to repeat myself over and over, but it has been a month and this is unresolved. they finally asked me to submit the CNR (customer non-receipt) form this week so they ought to be sending a replacement box now.

just a cautionary tale to balance out all you dudes bringing 5k to the bank each week.
decibel08 is offline  
Old Jul 18, 09, 2:51 pm
  #2905  
 
Join Date: Jul 2005
Posts: 3,057
I am no tax pro, but when I read what you post I don't see how it can apply to what we are doing.

The IRS statement is for miles earned through travel. We are earning miles through credit card purchases.

Originally Posted by gejone View Post
The IRS has already determined that acquiring airline miles is not a taxable event. Although the following IRS anouncement is directed towards mileage earned thru business or offficial travel, the same rule applies to personally acquired miles. Don't get hung up on the last sentence "for tax avoidance purposes", we aren't doing that. This is a hobby for most of us and if you want to take it to the exteme, we are buying a product and selling a product for the same price, thus there is no profit, therefore no tax. For those who had thought about writing off their expenses, you can't take a hobby loss against other income. Yes, I am a tax pro and am not worried about what the IRS thinks of our hobby.

Announcement 2002–18

Most major airlines offer frequent flyer programs under which passengers accumulate miles for each flight. Individuals may also earn frequent flyer miles or other promotional benefits, for example, through rental cars or hotels. These promotional benefits may generally be exchanged for upgraded seating, free travel, discounted travel, travel-related services, or other services or benefits. Questions have been raised concerning the taxability of frequent flyer miles or other promotional items that are received as the result of business travel and used for personal purposes. There are numerous technical and administrative issues relating to these benefits on which no official guidance has been provided, including issues relating to the timing and valuation of income inclusions and the basis for identifying personal use benefits attributable to business (or official) expenditures versus those attributable to personal expenditures. Because of these unresolved issues, the IRS has not pursued a tax enforcement program with respect to promotional benefits such as frequent flyer miles.

Consistent with prior practice, the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer’s business or official travel. Any future guidance on the taxability of these benefits will be applied prospectively. This relief does not apply to travel or other promotional benefits that are converted to cash, to compensation that is paid in the form of travel or other promotional benefits, or in other circumstances where these benefits are used for tax avoidance purposes.
ClimbGuy is offline  
Old Jul 18, 09, 3:38 pm
  #2906  
 
Join Date: Mar 2009
Posts: 100
Originally Posted by decibel08 View Post
ok here's my value subtracted question... has anyone had any shipping problems with the usmint / UPS ? one of my orders never showed up and UPS shows "billing information received" and claims they never picked up the box from the mint, while the mint claims it was shipped. kind of a nightmare, but at least it's only $500 worth. i have been on the phone with the mint a lot and have the name and extension of one person so i don't have to repeat myself over and over, but it has been a month and this is unresolved. they finally asked me to submit the CNR (customer non-receipt) form this week so they ought to be sending a replacement box now.

just a cautionary tale to balance out all you dudes bringing 5k to the bank each week.
I may potentially have the opposite problem. I have a $500 order that was just shipped, but UPS tracking is showing a package weight of 133.9lbs. We all know that can't be right. I guess I'll have to wait and see what happens when I get the box.
nohbdy is offline  
Old Jul 18, 09, 3:42 pm
  #2907  
 
Join Date: Jul 2006
Posts: 332
I had the same thing with the weight showing over a hundred pounds, unfortunately only the $500.00 I ordered were delivered at a substantially less weight
Adirondacker is offline  
Old Jul 18, 09, 4:08 pm
  #2908  
 
Join Date: Aug 2002
Programs: AA EXP "Life is good! Really good.""
Posts: 4,923
I've got one box of 250 that's overdue, but the tracking order is for FedEx not UPS, and it did move out of the Indianapolis FedEx place today. Don't know where it's headed, but movement is good.
lili is offline  
Old Jul 18, 09, 5:05 pm
  #2909  
 
Join Date: Mar 2003
Location: Independence, MO USA
Programs: AA LT Gold & Marriott Gold
Posts: 275
Originally Posted by ClimbGuy View Post
I am no tax pro, but when I read what you post I don't see how it can apply to what we are doing.

The IRS statement is for miles earned through travel. We are earning miles through credit card purchases.
The IRS is looking at the asset (miles) that you receive, they don't care what program you're on. As long as they aren't received inlieu of compensation or income they aren't taxable. I don't want to get into a big discussion on the tax issue, the following is a brief list of when miles might have a tax issue.

You sell them for cash - the cash is taxable to you.

You do work for someone and they give you miles or a free ticket instead of money - taxable to you.

And the reverse of that,

You use your miles and give a free ticket to an employee - that is taxable to the employee, similar to a bonus, value of the ticket goes on the W-2.

You use your miles and give a ticket to a contractor who is working for you - that is taxable to the contractor and goes on the 1099.

If anyone needs additional tax information, please consult your tax pro or the IRS. This thread could easily get sidetracked.
gejone is offline  
Old Jul 18, 09, 5:27 pm
  #2910  
 
Join Date: May 2008
Location: SFO
Posts: 843
Originally Posted by nohbdy View Post
I may potentially have the opposite problem. I have a $500 order that was just shipped, but UPS tracking is showing a package weight of 133.9lbs. We all know that can't be right. I guess I'll have to wait and see what happens when I get the box.
good thing the shipping is free !
decibel08 is offline  

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