Fidelity 50k AA Miles Bonus?

[IWOL]

Not sure if this is the right place to post this question.

Fidelity offers a 50k AA miles bonus if you open a new brokerage account with 100k plus or fund an existing account with 100k or more.

My Dad has 250k in a Wells Fargo managed account that is very conservative and has earned almost no return over the last couple of months and they have charged him way to much to do very little. I suggests to him to move the money to a self managed account and that I would assist him along with picking conservative funds and ETF's. He doesn't generally by individual stocks. 

I currently have a Fidelity account that I don't actively trade on but ave around 10k in ATT shares in there that I was gifted by my grandfather at 15. 

If he openend a new Fidelity account with 150k he will get the 50k bonus miles and he can transerf the other 100k to my existing Fidelity account and we can get an additional 50k points.  According to the terms of the bonus the funds have to stay in the account for 9 months.

I was wondering what the tax implications of that  might be? If I am just managing the funds for him for 9 months and then transfer the funds and proceeds to his accoung after the 9 months would I have to claim the income? 

Anyone have any experience with something like this? Just figured we might as well get him the extra 50k miles as he travels to Asia 3 to 4 times a year so the extra mills would be useful.

[newUser0]

I am not a tax expert. I believe, since the account will be under your name/ssn. Fidelity will generate 1099 for you and report this to IRS. 

So, it should be included in your income. Other experts may verify this further.

[sailor_mercury]

I am also not a CPA so you would have to consult with a tax advisor.  However as a tax payer as I understand the IRS code, he is transfering/gifting an asset of $100k.  The first $14k is no taxable however the individual GIVING the gift would have the burden of paying the taxes on the additional $86k and then you would be paying taxes on $86k returning it.   That's not to say he can't loan you the money (you would need to see if you need to pay it back in the same tax year) however you may have to pay taxes on the income made during the time you held the asset. 

It feels like it could have significant tax implications that go well beyond the value of frequent flyer bonus miles.  Not to mention if Fidelity felt that you were abusing the program they might deny or recind the bonus miles or worse. 

You would have to confirm all the risks but I'm not sure the risk is worth the reward.