If somehow he was able to turn CC purchases into cash, at no discount, that’s a huge tax policy problem.
“If somehow he was able to turn CC purchases into cash, at no discount, that’s a huge tax policy problem.”
I assume there is a fee for the money order.
“If somehow he was able to turn CC purchases into cash, at no discount, that’s a huge tax policy problem.”
*He pulled the concept from personal-finance websites: Exploit the difference between unlimited 5% rewards and lower fees on gift cards and money orders.*
I’d say it does seem to be income because he’s not buying anything.
Rewards otherwise are discounts on product bought. IRS actually gains on taxable items.
In this cases, it’s pure finance. Moving money around the garner more money.
Is it income or capital gain? Probably income.
I have a problem with a federal judge encouraging a federal agency to write federal tax laws. if there needs to be a new tax law here, cowardly congress needs to vote on it and Joe Biden needs to sign off on it.
I wounder how much time it took and what his effective hourly rate ends up being. And if the government wants to now classify it as income seems fair he might want to report all of the expenses involved. Probably end up with IRS being owed nothing, maybe enough expenses that he might be owed a tax refund?