Paul L. CaronDean
Tuesday, January 31, 2012
By Paul Caron
Following up on last week's post, Why Does Citibank, But Not the IRS, Treat Frequent Flyer Miles as Taxable Income?:
For more, see The Tax Treatment of Frequent Flyer Miles: An Update. (Hat Tip: Alice Abreu, Dave Hoffman.)
IRS News, Tax | Permalink
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And the really nasty part of the Citibank position is that the miles are worth only 0.6 cents per mile (not 2.5 cents per mile) if a cardholder uses them (as I did recently) to pay his Citibank credit card bill. Is it possible that someone advised Citibank that whatever it reports (in dollars) on Forms 1099 can be deducted on its own 1120?
Posted by: eli bortman | Feb 1, 2012 11:10:00 AM
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