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Award Accelerator more expensive after NF upgrade

Award Accelerator more expensive after NF upgrade

 
Old Jan 7, 11, 12:09 pm
  #1  
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Award Accelerator more expensive after NF upgrade

So here is the weird situation: Recently I started being given money for additional airline expense on my corp card - up to $75. Its for things like checking baggage, change fees, etc. Well, I dont check bags and I dont pay change fees because of status so I use it for award accelerator. Ive noticed today though that after the NF upgrade for this Sundays flight, the award accelerator went from costing $66 to $99. Anyone have any idea why this is?
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Old Jan 7, 11, 3:38 pm
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Originally Posted by Skacorica View Post
So here is the weird situation: Recently I started being given money for additional airline expense on my corp card - up to $75. Its for things like checking baggage, change fees, etc. Well, I dont check bags and I dont pay change fees because of status so I use it for award accelerator. Ive noticed today though that after the NF upgrade for this Sundays flight, the award accelerator went from costing $66 to $99. Anyone have any idea why this is?
Your company allows you to use your corporate card to buy miles?
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Old Jan 7, 11, 3:42 pm
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Originally Posted by neo_781 View Post
Your company allows you to use your corporate card to buy miles?
That would be strange because it would not meet the IRS test for valid business expenses -- the bag & change fees should meet the IRS guidelines.
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Old Jan 7, 11, 5:49 pm
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Please post the angry letter you're going to get from your travel or accounting department. This should be good.
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Old Jan 7, 11, 10:43 pm
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Originally Posted by Skacorica View Post
Anyone have any idea why this is?
I think most people don't care because award accelerator is not a good value proposition.

-David
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Old Jan 7, 11, 10:46 pm
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Originally Posted by astroflyer View Post
Please post the angry letter you're going to get from your travel or accounting department. This should be good.
This is probably misuse of company funds...interesting, I'll grab the popcorn.
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Old Jan 7, 11, 11:23 pm
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Can't *someone* answer this poster's question??? shees!
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Old Jan 8, 11, 1:59 am
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Originally Posted by DavidHatt View Post
Can't *someone* answer this poster's question??? shees!
My theory is that the (N)F class caused the base mileage to increase 50% so award accelerator was offering 50% more miles at 50% more cost.
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Old Jan 8, 11, 3:54 am
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Originally Posted by LAX UA 1K View Post
My theory is that the (N)F class caused the base mileage to increase 50% so award accelerator was offering 50% more miles at 50% more cost.
+1. Award accelerator has consistently cost 3 cents per mile, so if it is still 3 cpm after NF then he's getting more miles.
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Old Jan 8, 11, 7:31 am
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Seems to be on "sale" now for 2.3 cents per mile but the principle is the same.
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Old Jan 8, 11, 10:42 am
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To defend the OP against the high-and-mighty tirades hes been getting, I am not 100% sure its a mis-use of funds...

For instance: Consultants are given a "per diem" for food, but you get paid the $50 (or whatever) regardless of how much you spend on food. If you buy $10 in food and spend the remaining $40 on shoelaces, no one cares. having worked for a short while at 1 of the big 4 accounting firms before grad school, I asked this question and was told the per diem is mine, no restrictions.

The OP's accounting department would know best, but for all we know they issued guidelines saying this was acceptable. Lets not judge.... yet
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Old Jan 8, 11, 11:50 am
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The IRS has extensive guidelines for what expenses businesses can deduct from their income and what expenses can be reimbursed tax-free to employees.

See this publication (and other IRS pubs covering more situations):

http://www.irs.gov/publications/p535/ch11.html

Per diem for meals (including incidental personal expenses, for that matter) is specifically allowed as an alternative to cost reimbursement if the per diem complies with IRS standards, based on the Federal government's allowance schedule. Other than those specific exceptions, reimbursement must be for an "ordinary and necessary" business expense; otherwise it becomes salary to the employee and reported on the W-2. There are also more significant implications for companies.

To illustrate with a concrete example: My organization gives Amazon.com electronic gift codes as a reward to support staff for excellent performance. The value of the gift is included in the employee's W-2 (and the organization adds some cash to that payroll period to approximately offset the taxes).
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Old Jan 8, 11, 12:01 pm
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sure, but if your company gives you a $50 pre-paid amex for food as a per-diem, they would not have added it to your income. And then if you end up spending that on something other than food, who cares. The irs cares about this as much as they care about taxing credit card points.

LAX UA 1k, I have to give you credit since you actually did take the time to answer to OPs question. And your response is well thought out. Its just a pet peeve of mine that people here sometimes spend the first 100 posts discussing the morality of what was actually a very interesting technical question.




Originally Posted by LAX UA 1K View Post
The IRS has extensive guidelines for what expenses businesses can deduct from their income and what expenses can be reimbursed tax-free to employees.

See this publication (and other IRS pubs covering more situations):

http://www.irs.gov/publications/p535/ch11.html

Per diem for meals (including incidental personal expenses, for that matter) is specifically allowed as an alternative to cost reimbursement if the per diem complies with IRS standards, based on the Federal government's allowance schedule. Other than those specific exceptions, reimbursement must be for an "ordinary and necessary" business expense; otherwise it becomes salary to the employee and reported on the W-2. There are also more significant implications for companies.

To illustrate with a concrete example: My organization gives Amazon.com electronic gift codes as a reward to support staff for excellent performance. The value of the gift is included in the employee's W-2 (and the organization adds some cash to that payroll period to approximately offset the taxes).

Last edited by theoflyalot; Jan 8, 11 at 12:08 pm
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Old Jan 8, 11, 2:23 pm
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Originally Posted by theoflyalot View Post
sure, but if your company gives you a $50 pre-paid amex for food as a per-diem, they would not have added it to your income. And then if you end up spending that on something other than food, who cares. The irs cares about this as much as they care about taxing credit card points.

LAX UA 1k, I have to give you credit since you actually did take the time to answer to OPs question. And your response is well thought out. Its just a pet peeve of mine that people here sometimes spend the first 100 posts discussing the morality of what was actually a very interesting technical question.
Thanks, I also appreciate them answering and you defending me.

And to the rest of you, he is correct; it is a flat amount of money, strictly speaking, its not as the IRS intends, but then again, name me one consultant that purely uses their per diem for food? The IRS doesn't care about this, they care about the people they lose hundreds of thousands/millions a year lying on their taxes.
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