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Meeting 4K Spending on CSR - Question

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Valued Contributor

Re: Meeting 4K Spending on CSR - Question


@longtimelurker wrote:

 

As for calling, getting reliable info from a CSR is problematic at best.  Ask your issuer if it's OK to go on a app spree etc, and they might well say no.  It doesn't mean you shouldn't, your interests and the lender's may not be identical.   Same here, you want the bonus, Chase wants you to be a loyal user of (just) their card.....


First, there are issuers who will shut down your accounts with them beause of an app spree. Barclays comes to mind. So that's not a particularly strong example. And for the record, if you are worried about an account being closed - and you don't want it closed - due to an app spree, it might not actually be such a bad idea to call and ask. I'm assuming that in this case, OP wants their CSR to remain open.

 

Second, an issuer has much stronger say over how you use their card and what is and isn't a purchase on their card than they do over your accounts with entities that are not them, and legitimately so. Credit cards are in essence lines of credit the bank is extending to the holder. The only part of a credit card the holder "owns" is the debt incurred on it. Everything else is the lender's property, including the physical card itself.

Message 51 of 56
Super Contributor

Re: Meeting 4K Spending on CSR - Question


@redpat wrote:

Lol! This whole thing smells.

 

Also, everyone is forgetting that he has a charge from the same vendor that gave him income so he could technically net or expense that part because he technically didn't earn that income / refund of services.  It went in and out......?????!!!!!!! 

 

Gross sales is different than net income!


True, however the OP tax return begins with Gross Income as the default starting point. Justifying items to reduce that income should have a legitimate expense. It is a low risk that the OP tax return would be selected for audit, but as a 1099 recipient, with declaring expenses, that risk of audit is a bit more than a W-2 employee.

 

IRS agent: "Who did you pay this expense amount to?"

OP: "The same company that paid me most of my incoming 1099 revenue".

 

awkward pause...

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Message 52 of 56
Valued Contributor

Re: Meeting 4K Spending on CSR - Question

G
@NRB525 wrote:

@redpat wrote:

Lol! This whole thing smells.

 

Also, everyone is forgetting that he has a charge from the same vendor that gave him income so he could technically net or expense that part because he technically didn't earn that income / refund of services.  It went in and out......?????!!!!!!! 

 

Gross sales is different than net income!


True, however the OP tax return begins with Gross Income as the default starting point. Justifying items to reduce that income should have a legitimate expense. It is a low risk that the OP tax return would be selected for audit, but as a 1099 recipient, with declaring expenses, that risk of audit is a bit more than a W-2 employee.

 

IRS agent: "Who did you pay this expense amount to?"

OP: "The same company that paid me most of my incoming 1099 revenue".

 

awkward pause...


Didn't say expense Schdule C line under gross sales Returns and giveaways, that's where a refund would go from the same company that gave you a check.  You gave it back to them but on your credit card.  Services where never rendered.  Returns and refunds happen all the time.

 

In addition, the whole transaction should not be put on a 1099 for accounting purposes because no services where transacted it could be put through a loan account or customer deposit account because it did go in and out of each of their accounts.  The whole audit or accounting trail is the credit card and the check being paid back it's a wash.  So showing whole transaction to an agent wouldn't be awkward at all.  

 

Therefore for tax purposes there is nothing wrong with this transaction but from an ethical stand point there is.

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Message 53 of 56
Established Contributor

Re: Meeting 4K Spending on CSR - Question

If you can't spend $1,333 a month organically, perhaps the CSR isn't the right card for you?

As far as taxes, the way the OP describes this both he/she and the company would inflate their gross income by 4K.

What you would do instead is say:

4K charged by company on CC
4K *refunded* by company via check (not a commission -- a customer refund).

I have no idea why the company wants to do this though. Waste of time and money.
Message 54 of 56
Super Contributor

Re: Meeting 4K Spending on CSR - Question


@rlx01 wrote:
If you can't spend $1,333 a month organically, perhaps the CSR isn't the right card for you?

As far as taxes, the way the OP describes this both he/she and the company would inflate their gross income by 4K.

What you would do instead is say:

4K charged by company on CC
4K *refunded* by company via check (not a commission -- a customer refund).

I have no idea why the company wants to do this though. Waste of time and money.

The whole thing is an incredibly bad idea. Why someone would want to get their employer mixed up in something like this is beyond me. 

;
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Message 55 of 56
Established Contributor

Re: Meeting 4K Spending on CSR - Question

Yeah. If my company did this I'm pretty sure our book keeper and accountant would fire us. Smiley Happy
Message 56 of 56
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