• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Credit card points aren't taxable income

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. I use a corporate credit card to pay business expenses, including inventory items. I’ve racked up a lot of reward points that I’ll use for both business travel and personal travel. Do these points count as taxable income? J.W.

A. No. The law is a little hazy on this point, but the conventional wisdom is that such reward points are in the nature of nontaxable discounts. Similarly, you won’t be charged any extra tax if you use a credit card to earn frequent-flier miles, whether the mileage is used for business or personal travel. Tip: You can generally deduct credit card fees as a business expense, but you get no comparable tax benefit from this type of expense on your personal return.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7165/credit-card-points-aren039t-taxable-income "

Leave a Comment