If a business owner purchases air travel for a job with his personal frequent flyer miles, where do I offset the air travel on the invoice since no bank account or credit card was charged for the expense?
Generally, unused frequent flyer points are not assigned a value for federal and state income tax purposes. Rules and regulations that define how to value the points accumulated by the beneficiary of the mileage points has not yet been established. Therefore, if there is no value included in the income of the person receiving the points, there is no expense allowed in using the points, regardless of how the points are used.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: William B. McAllister, CPA, is a sole proprietor from Honesdale, Pa.