FPP porsche- taxable?

[DDBeast]

Do you have to pay tax on the Cayman S if you buy it with with FPPs at Stars?

[fnord_too]

yep.

[DDBeast]

It's not considered a gift?

[Legislurker]

Gifts are taxable here in the hegemon of the free world. We left hospitality behind in the Middle Ages.

[Russ Fox]

In almost all cases, gifts are not taxable to the recipient. (They can be subject to the Gift Tax and/or necessitate filing a Gift Tax return, but the Gift Tax and/or Gift Tax Returns are paid by/filed by the giver of a gift, not the recipient.)

Note that I am not saying that a Porsche redeemed with FPP is a gift....

-- Russ Fox

[DeadMoneyDad]

[ QUOTE ]
Do you have to pay tax on the Cayman S if you buy it with with FPPs at Stars?

[/ QUOTE ]

A good argument could be made that you have earned it. I'm not sure of the exact tax laws but it is similar to discounts or items redeemed in a credit card rewards system IMPO.

So you've got a nice question for a tax professional.


D$D

[4_2_it]

Is rakeback taxable? [HINT: Answer is yes.]

This is no different.

[DeadMoneyDad]

Rakeback is a return of cost normally paid.

Loyality points are earned.

IMPO there is an argument to be made.

I didn't say you had a slam dunk winner just a decent argument.

As always consult a tax professional or TWO and your Lawyer before potentially taking on the IRS.

D$D

[4_2_it]

D$D,

So the argument would be that FFP redemptions are the same as someone getting a comped room or a free dinner at a B&M casino. Hmmmmm.......very interesting indeed.........

[LT22]

seems like FPP purchases could be a "benefit" or comp

do ppl pay income tax on health insurance paid for by their employer?