MCBuggyCo has just posted in the Tax Topics For Expediters forum of Expedite Trucking Forums under the title of Just Rewards.
This thread is located at
http://www.expeditersonline.com/forum/tax-topics-expediters/32768-just-rewards.html
Here is the message that has just been posted:
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A rewards credit card is used to purchase fuel. Are the rewards taxable as income? Do the credit card companies report them to the IRS as such? Would an annual fee be a deduction? If the reward is used to purchase something for the truck would that offset the income aspect? Finally, what about any interest that might accrue?
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Hi McBuggyCo
The rewards are not taxable income and cannot be used to offset your income.
They are not reported to the IRS at all. Can you imagine if every credit card company, Motel Previlege, and all reward cards that have been issued, and Frequent Flyer Airline Miles would have to send out 1099 MISC I DON'T THINK SO.
If the Card is a Business Credit Card, you may take the interest charged, but if it is a personal card, the interest is only deductible on the business charges. not the whole statement finance charges.
Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
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