CFW incentives improved overnight

[airjay75]

Do I have a business? Yes. Do I put spend on my cards that’s personal? Yes. Would I tell Amex that my DVC was for business purposes if they asked? Yes. After all many people have a business renting out DVC

And I think that is perfectly defensible!

 

[AstroBlasters]

Do I have a business? Yes. Do I put spend on my cards that’s personal? Yes. Would I tell Amex that my DVC was for business purposes if they asked? Yes. After all many people have a business renting out DVC

Follow up questions:

1) Does the business credit card have to be tied to a specific business upon application? Supporting documents? Especially with Chase….
2) Isn’t there an issue if you ever have an audit and you have commingled personal spending on business credit cards and bank accounts?
3) Don’t you have to make a certain level of income for something to be qualified as a business (profit seeking, hours worked, etc.) vs a hobby? This may just be for taxes…as lots of business lose money…., but I though there was still some type of hours put into the business qualifications…

I work in a very regulated business and if you put anything (no matter how small) on a work card and don’t quickly declare it as accidental personal spending (I.E you used the Lyft app and it defaulted to your corporate card) then you could get fired. Retroactively looking at business expenses and the corporate card is one of the fastest ways I have seen people get fired if management is looking for a reason …. So I am extremely paranoid about that type of stuff.

 

[Brian Noble]

Do I have a business? Yes. Do I put spend on my cards that’s personal? Yes. Would I tell Amex that my DVC was for business purposes if they asked? Yes. After all many people have a business renting out DVC

Oh, I totally understand that others will do this. Like I said, I'm weird. While I do have a Schedule C consuting business, I do not have a Schedule E DVC rental business, and I don't want to claim that I do.

I particularly don't want to do that given DVCMC's saber rattling around commercial use.

 

[Brian Noble]

Follow up questions:

1: Chase asks for the nature of the business, estimated annual revenue, and estimated monthly spend.
2: I don't think there are any IRS rules forbidding it*, but it will make defending your Schedule C deductions more complicated.
3: No, only the intent for profit, as I understand it**.

I work in a very regulated business and if you put anything (no matter how small) on a work card and don’t quickly declare it as accidental personal spending (I.E you used the Lyft app and it defaulted to your corporate card) then you could get fired.

Semi-related story: I started working at the University back when phone calls were billed individually. After a few months, the lab adminsitrator came by with some phone bills.

Lab admin: "You haven't marked these up yet?"
Me: "What do you mean?"
LA: "You have to identify which calls are personal, so that they can be deducted from your check."
Me, realizing we are talking about at most a few bucks for a PITA monthly task: "Every single phone call I ever make is personal. Deduct them all. Never ask me about this again."

And, more on my weirdness: I do not claim a home office deduction on my Schedule C. It would be easily justifiable, given the nature of my side gig. But, I don't have a space I use solely for work, and I don't want to have to be in a position to lie about that. For me, personally, a sound night's sleep is worth the few dollars it migth cost me. If someone else could sleep soundly while still claiming it, well---Adler would remind me that that is not my task.

----
*: IANAA. I am not an accountant.
**: IANAL either.

 

[cigarboo]

So, how about putting it on the Disney premier Visa vs Costco Visa? Any thoughts? I think it's 2% Disney rewards with Disney Card or 1% Cash back on Costco? I was hoping it was coded as travel for 2%, but I briefly looked back at my transaction a couple year ago, and I think I only got 1%

 

[Brian Noble]

You know, in the current interest environment, the Disney Premiere is not a terrible idea. 2% back on the purchase, and as long as you have the cash on hand at the beginning, you can stash it in a HYSA or money market account for the 6-month 0% interval, and probably earn another 1.5-2% after taxes on it, give or take.

The trick is having a high enough credit limit on it, but if you have other Chase cards, you might be able to talk them into consolidating some of it onto the Disney card. The other issue is if you intend to take out a large loan (mortgage, HELOC, etc.) during that time, as your credit rating will probably take a hit during the period you are carrying this balance. But maybe not too much of one?

I know my rating dipped druing the two billing cycles I put the purchase through on my cards, because my utilization ratio was higher than usual, and those were paid off right away.