Are MS Gains Taxable?

#36
Let's say I buy a $50 hotels dot com GC for $50 to trigger an Amex Offer for a $10 rebate. I then use TCB for a 2%/$1 rebate and sell said GC for $40. Do I input my spreadsheet to show a $10 loss, $9 loss, breakeven, or $1 profit? What if I use a cash back Amex and get another 1% rebate? Does it now change to $9.50 loss, $8.50 loss, $0.50 profit, or $1.50 profit? If I use a MR card and later cash out with a Schwab Plat does that make said MR now taxable?

Now, what if I buy a $50 hotel dot com GC for $40 from Amazon and again sell for $40? Any difference now that the GC was bought for $40 outright rather than $50 minus $10 via an Amex Offer? And if I use a 2% cashback card on Amazon? Am I now at breakeven or $1 profit?

I still find myself confused with all the potential variables so my spreadsheet has multiple columns for each outcome but I have no idea which way is the ‘correct way’ to look at this madness.
 

Seeme

Level 2 Member
#37
Let's say I buy a $50 hotels dot com GC for $50 to trigger an Amex Offer for a $10 rebate. I then use TCB for a 2%/$1 rebate and sell said GC for $40. Do I input my spreadsheet to show a $10 loss, $9 loss, breakeven, or $1 profit? What if I use a cash back Amex and get another 1% rebate? Does it now change to $9.50 loss, $8.50 loss, $0.50 profit, or $1.50 profit? If I use a MR card and later cash out with a Schwab Plat does that make said MR now taxable?

Now, what if I buy a $50 hotel dot com GC for $40 from Amazon and again sell for $40? Any difference now that the GC was bought for $40 outright rather than $50 minus $10 via an Amex Offer? And if I use a 2% cashback card on Amazon? Am I now at breakeven or $1 profit?

I still find myself confused with all the potential variables so my spreadsheet has multiple columns for each outcome but I have no idea which way is the ‘correct way’ to look at this madness.

From the way I understand it, you spent $50 and then sold it for $40. Ended up with a $10 loss. All of the rebates that you received are not taxable, and aren't factored into gain/loss.

With that being said, I'm not an accountant by any stretch of the imagination.
 

JD101

Level 2 Member
#38
credit cards points are not taxable

The IRS does do some random audits but they seem to like to go for low hanging fruit because their resources are limited. They typically target an area that seems to be a problem run a test program then expand it if they find a significant "hit rate".
 
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