Credit Card Cashback Rewards Shouldn't Be Taxed | Feature requests (public)

Credit Card Cashback Rewards Shouldn't Be Taxed

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Teal Marsupial

Generally, the IRS categorizes redemption of credit card rewards and frequent flyer miles as non-taxable. Koinly needs a way to record CC rewards as non-taxable.

December 30, 2022

Petur

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Koinly now has a 'Cashback' label which is treated as non-taxable

Teal Marsupial

Koinly treats cc rewards as income with zero cost basis.

Cyan Tarsier

It should just flag as deposit which is non tax in koinly

Teal Marsupial

Cyan Tarsier: I think it would need to adjust the cost-basis in order to not be taxed later when sold.

Cyan Tarsier

Teal Marsupial: you should be taxed on any gain when sold. The rewards are not tax as income.

Teal Marsupial

Cyan Tarsier: Agreed, but the tax cost-basis should not be zero. Probably it should be the sales price minus the fair market price when awarded...no?

Cyan Tarsier

Teal Marsupial: the cost basis should be the market value when you earned the reward/deposit. Are you getting a zero basis for the reward / deposit?