Tag Archives for taxes.
The hotel claims to have reduced their energy use by around 40%. They pocket those cost savings, and those savings are supposed to pay back subsidized loans – and they make money on the difference. So why are they imposing a fee, through drip-pricing, to charge guests for it – and mislead them about the program?
This case only came to light because of the sheer scale – over $300,000 in credit card rewards without the purchase of bona fide goods or services.
However anyone who bought, stay, a million dollars or more in dollar coins from the U.S. Mint is lucky that the IRS cannot audit back that far in the absence of a fraud on the relevant tax returns.
The President has indicated support for a $4000 domestic travel credit where you’d get half your money back from airfare, hotels, restaurants and related spending on domestic trips.
That’s now morphed into Martha McSally (R-AZ)’s “American TRIP Act” which would provide a tax credit of $4000 per adult ($8000 to a couple filing jointly) and $500 additional per dependent child to spend in 2020 or 2021 on domestic travel 50 miles or more from home, as well as $50 million to Destination Marketing Organizations to promote tourism to their region. This is insane.
The Trump administration is reportedly considering a domestic travel “Explore America” tax credit that would refund 50% of up to $8000 per household in air, hotel, rental cars and even event tickets and restaurant spend as long as you’re at least 50 miles away from home.
I would love for other people to cover $4000 of my travel expenses. But the idea is nuts.
Austria’s government bailed out Austrian Airlines with about half a billion dollars, even after its German parent obtained a $9.8 billion aid package. Part of Austria’s bailout includes moves to protect the airline from competition, under the guise of environmental responsibility.
Last summer Lufthansa’s CEO declared that only the wealthy should fly arguing that the cheapest flights offered by competitors are “economically, ecologically, and politically irresponsible.” And all it took was a global pandemic to get those cheap flights banned.
The Coronavirus Aid Relief and Economic Security Act of 2020 (CARES Act), which contained a nearly $60 billion bailout of the U.S. airline industry, has a curious affect on the value you will get for your airline miles and points.
The federal government charges a 7.5% excise tax on domestic air travel. When you buy miles from a U.S. airline you have to pay the tax, because the assumption is the miles are being used for domestic travel.
The IRS notes that if you use purchased miles for international travel (or hotels, gift cards, or anything other than domestic air travel) you can claim a refund of that 7.5% tax.
This is part of an “economic recovery package” that will somehow “reactivate the local tourism industry.” I do not think this is how it works.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
On Thursday I mentioned that the Starwood American Express is offering double points for tax payments. According to Free Frequent Flyer Miles the United Visa is offering double points on tax payments as well.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
