Read the article to get context for my comments:
_http://articles.orlandosentinel.com/2012-02-07/travel/orl-travel-perkins-02
0712_1_value-of-frequent-flyer-citi-inflated-value_
(http://articles.orlandosentinel.com/2012-02-07/travel/orl-travel-perkins-020712_1_value-of-frequent
-flyer-citi-inflated-value)
In a nutshell, Citibank is using this technique to artificially boost its
losses analogous to the old tax shelters where losses were created
independent of market value.
Customers bear the burden which can be alleviated by coming up with market
valuations paired to time when benefits are received. But this is a hassle
& it still kicks you up a notch if you're challenged on your valuation.
I'll use this as a soapbox to talk about non-cash prizes which result in
1099s. Before going for these prizes look up the value before participating.
Just in case you win, do you really want to report a $40,000 1099 for a car
that you could have bought for $28,000?
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