Renting your points IS considered income by the IRS. Report it!
And the DIS mods & webmasters too, right?Really, no one wants to run afoul of tax laws. The IRS is way up there on the list of organizations not to run afoul of. Along with the mob, really.
Compared to the IRS, y'all are fuzzy bunnies.And the DIS mods & webmasters too, right?
Just because David's doesn't provide info about the tax doesn't mean it doesn't apply.Ive always used David's and looked into the other company this weekend as you get slightly more per point and received the same info about the tax. Think I'll stick with David's.
Legally an US citizen owes taxes on income above deductible items. Simplistically that means taxes are marginal tax rates for the rental price minus the applicable dues. No allowance for depreciation related to the purchase amount. While technically possible, it's not feasible to use the two free weeks a year you might with a condo. Many don't report it though.I recently inquired on a website to rent out my points but they want me to fill out a tax form? Am I legally supposed to file a claim for renting points to the IRS? I didn’t do it cause I’ve rented them out before and wasn’t asked to fill out a tax form.
Note you can offset some of the income by apportioning your maintenance fees against it, as well as any costs associated with renting the points. At present rental rates, that will eliminate about half of the "income" from the rental.
Maybe if you ate PayPal fees or gave someone a commission or referral bonusWhat are some possible costs associated with renting out points? I can't think of any...
Rental listings, payday/CC fees, commissions, taxes, escrow fees are some that come to mind. But overall small potatoes which is why I didn't mention those above, I thought it'd add more confusion to the message than it's add information.Maybe if you ate PayPal fees or gave someone a commission or referral bonus