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

Credit Card Cashback Rewards Shouldn't Be Taxed

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Experienced Swift

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

Experienced Swift

Koinly treats cc rewards as income with zero cost basis.

Apparent Condor

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

Experienced Swift

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

Apparent Condor

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

Experienced Swift

Apparent Condor: 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?

Apparent Condor

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