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How to make $300k arbitraging credit card points and then pay zero taxes on it
Posted on 4/27/24 at 9:03 pm
Posted on 4/27/24 at 9:03 pm
14
Posted on 4/27/24 at 9:33 pm to Street Hawk
Posted on 4/27/24 at 9:49 pm to Street Hawk
Amex caps the grocery store 6% cash back/rewards on grocery stores at $6,000. If you go into the comments in the tweet there is a Reddit thread where someone spent 8-12 hours per week for a year maximizing bonuses and got $32k in various perks but only $6,257 in credit card bonuses along with ~$10k in points. So 400-600 hours a year to earn $42k in total points and perks.
This $300k is complete hogwash unless you’re talking about a decade+ of churning, and that’s also incredibly unlikely since most perks are for first time users.
ETA- I found the original tax case that the OP is referencing and it was during an uncapped promotion Amex was running in 2013 and 2014. Not gonna happen today unfortunately.
According to the tax court ruling, he also had to pay taxes on some of the money when he directly bought money orders and/or reloaded prepaid debit cards. I’m not sure how much was generated that way.
This post was edited on 4/27/24 at 9:56 pm
Posted on 4/27/24 at 10:13 pm to Street Hawk
Sounds like the shenanigans I pulled to make thousands in risk free money on online sports betting apps
This post was edited on 4/27/24 at 10:13 pm
Posted on 4/27/24 at 10:23 pm to Fat Bastard
quote:
some people are making money also selling their credit.
There is just no way that I would add some unknown person as an authorized user on my credit card
Posted on 4/27/24 at 10:24 pm to Street Hawk
Is that article in English? Good lord who edited that pile of crap
Posted on 4/27/24 at 11:57 pm to Fat Bastard
quote:
some people are making money also selling their credit.
Seems like a good way to have your cards canceled. I have my wife and kids on mine to help their credit... but a stranger and getting paid for it... na
This post was edited on 4/27/24 at 11:58 pm
Posted on 4/28/24 at 6:48 am to Street Hawk
Was the sales tax 0 in that jurisdiction?
Posted on 4/28/24 at 7:15 am to Street Hawk
The credit card companies also caught on to this trick.
Posted on 4/28/24 at 8:01 am to SlowFlowPro
quote:
Was the sales tax 0 in that jurisdiction?
You don’t pay sales tax on gift cards or money orders.
Posted on 4/28/24 at 9:17 am to Street Hawk
This article is complete bullshite... but what was the Vanilla card scheme that was on this board about 5yrs back?
Posted on 4/28/24 at 9:23 am to Street Hawk
This is called manufactured spending and if the credit card companies get wise to it they close accounts, including bank accounts, in a hurry. Nice little game until you're busted and then have no means of getting credit.
This post was edited on 4/28/24 at 9:26 am
Posted on 4/28/24 at 10:29 am to NATidefan
quote:
Seems like a good way to have your cards canceled.
read the article. it is obvious you do not know how it works,.
This post was edited on 4/28/24 at 10:32 am
Posted on 4/28/24 at 10:32 am to Beessnax
quote:
There is just no way that I would add some unknown person as an authorized user on my credit card
BETA Page
quote:
It's important to understand that at no point will the authorized user have access to a physical card (or your card information) and therefore cannot spend or utilize your credit line in any way.
Posted on 4/28/24 at 10:36 am to Street Hawk
hard to believe he made 300k in CASH BACK?
you realize how much he had to do? to acquire that?
you realize how much he had to do? to acquire that?
Posted on 4/28/24 at 10:38 am to slackster
quote:
Amex caps the grocery store 6% cash back/rewards on grocery stores at $6,000.
AMEX gold is capped at 25k I believe but you have to pay $250/yr.
Posted on 4/28/24 at 10:58 am to fallguy_1978
I manufactured spent over $100k through Coinbase for cc initial bonuses back in 2017 when they allowed CC deposits. A lot of loopholes got shut down throughout the year but there’s still some unicorns around that people are very hush hush about.
Posted on 4/28/24 at 11:45 am to Odinson
I've never been a credit card for everything type of guy. I don't even pay most bills with them other than a couple of streaming services. A lot of places charge fees now which makes it not worth it.
I have an AMEX cash back preferred card that I use for things that they have decent bonuses on (streaming, groceries, and gas mostly). It's free money I guess, but not really enough to move the needle for me.
I have an AMEX cash back preferred card that I use for things that they have decent bonuses on (streaming, groceries, and gas mostly). It's free money I guess, but not really enough to move the needle for me.
Posted on 4/28/24 at 11:57 am to Street Hawk
Wasn't this sort of the plot of Punch Drunk Love?
Posted on 4/28/24 at 12:36 pm to fallguy_1978
quote:
AMEX gold is capped at 25k I believe but you have to pay $250/yr.
Yes but it’s only 4% and it’s points.
I take full advantage of Gold/Blue reward programs, but I’m not going to spend 8-12 hours per week trying to churn offers across all companies and banks.
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