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@Open123 wrote:Personal CC rewards and sign-up bonuses earned by spending is not taxable period. Bank account bonuses (checking) is 100% taxable as ordinary income.
Business CC rewards are taxable if there is a clearly defined monetary value, such as cashback. It is not taxable if there is "no" fixed monetary value, such as UR, MR or SPG.
That's it.
Interesting distinction with the business cards. I will avoid cash back biz cards, which I am prone to avoiding anyway.
That's a lot of 1099 Types
I will need to check, what all I got for this year. Also, I don't have business cards, so can ignore this for a while....
@red259 wrote:
@Open123 wrote:Personal CC rewards and sign-up bonuses earned by spending is not taxable period. Bank account bonuses (checking) is 100% taxable as ordinary income.
Business CC rewards are taxable if there is a clearly defined monetary value, such as cashback. It is not taxable if there is "no" fixed monetary value, such as UR, MR or SPG.
That's it.
Interesting distinction with the business cards. I will avoid cash back biz cards, which I am prone to avoiding anyway.
Reason being that if the charges were deducted, then you can't benefit from the rewards. For insance, if your business purchases a Disability Policy and deducts the premium, then all benefits are fully taxable. Conversely, if you don't deduct it, then all benefits are tax free.
In the case of rewards, points are not taxable, for now. Cashback is 100% taxable, if charges were deducted, which is the case for all legitimate business expenditures.