I just finished the incentives for 2002 at my company. One thing just ouccred to me. In past years they only gave cash. (not a bad thing eh?) But this year in addition to cash, they gave a trip to Rome and some hotel bonus points.
Of course they took the taxes out for the cash before they issued the check (along with 401K). But what is the tax obligation for the Trip and the points. If you convert the hotel program to airline miles do you pay tax? You can also trade the hotel points for American Express Gift Cards. So are these tax free gifts?