American Express: My Wish List (tm)

ShibbOleth · May 12, 2005, 1:10am

American Express has resurrected their My Wish List[sup]TM[/sup] promotion. In this promotion they offer up different items for sale over a multiday period for low-to-insane prices. As an example I think the first one had a BMW Z4 (or similar) offered at $5,000 (USD). The list of that car is more like $40k, IIRC. The current sale started with big motorcycles, then home theater system, fancy robo-vacuum, etc. They offer a limited number of each item, maybe 3 of the BMWs, 8 of the motorcycles, 300 blenders, 100 beds. You get the picture. I tried to buy a $5,000 BMW but wasn’t quick or lucky enough.

Now if I win a cruise or the lottery I have to pay tax on this as “income”. But what about very reduced price goods? If a car is worth $40,000 but I get it for $5,000, did I just get a keen bargain or have I won a prize? Does it change if I turn the car around the next day and sell it for $30,000?

postcards · May 12, 2005, 2:20am

While you may only pay Amex 5 grand for the car, don’t be surprised if you are responsible for the sales tax in your state for the entire MSRP.

This is only a WAG; I suggest you read the fine print.

ShibbOleth · May 12, 2005, 2:14pm

Ok, but that would be sales tax (and I’ll go read the fine print). I was more interested in whether it’s declarable as income.

Maeglin · May 12, 2005, 4:15pm

Hey Shibb,

Yes, it is declarable as income. Sales tax is based on actual price paid and not the recommended retail price.

Here is the FAQ:

Do I have to pay tax?
Yes. You will be responsible for your state’s individual tax rates. The sales tax charged, if applicable, will be based on the actual price paid (the WishList price) rather than the recommended retail price. All purchases may be subject to personal income tax (federal, state, and local) based on the discount amount off the fair market value of each of the item(s) purchased. Discount amounts of more than $600 per Cardmember across one or multiple purchases are reportable to the Internal Revenue Service as personal income. For select items only, American Express will send you a tax affidavit for you to complete and return immediately. You will later receive a Form 1099-MISC reflecting your total savings from American Express in January 2006. American Express strongly recommends that you consult your personal tax advisor with any tax questions or concerns regarding your participation in the promotion.

Please note if you have purchased a single item that is subject to income tax, you must return the completed tax affidavit to American Express before the item will be shipped to you.

Weird to see this on the SDMB. I work for AMEX right next to some of the people who run this campaign.

lno · May 12, 2005, 5:04pm

So what you’re saying is that you’ll hook us up with some cheap Beemers, then.

ShibbOleth · May 12, 2005, 5:09pm

Yeah, that’s the ticket. And can you let us know what’s coming up next week?

Maeglin · May 12, 2005, 5:33pm

If I told you, I’d have to cash out my Membership Rewards points to have you killed.

ShibbOleth · May 12, 2005, 5:49pm

How many points is that running these days? Just curious.

Maeglin · May 12, 2005, 6:56pm

A meager 25 million. But you have to have the special black card.

Humble_Servant · May 13, 2005, 3:18am

My Wish List ™

An airline where I can actually use my Rewards/Points on an actual flight going to a place where I actually want to go.
Peace on earth.
A decent Cafe Society thread.

I’ve only got 58,000 points. I understand I may have to settle.

[sub]HS–member since 1984[/sub]