Question about rules regarding rewards point on business credit cards

[Ottoford]

I own two businesses (both are just me, no employees) and have Chase Ink credit cards for both.  Do the cash back rewards have to apply to things I use for the businesses?  Or can I get gift cards to use to go out to eat or shop on Amazon?

For example, I can get Hyatt gift cards which I would use only for business travel.  But if I pay for the Grand Hyatt with the business account then I get a write off and I can get Applebee's or Amazon gift cards that I would really only use for personal use.  Is that unethical or even illegal?  I've never cashed in my business rewards points before.

Conversely, I recently got a Wyndham rewards personal card because I thought I would be able to use it for an upcoming personal trip to get a free night at a Days Inn.  It turns out I have to cancel that trip.  So instead I used it for a free night for an upcoming business trip.  But I feel like I'm missing out on a personal reward since I am applying it to a business trip.  Regardless, I didn't want to pay over $300 for a hotel room in NYC (late booking) so I used the Wyndham rewards.

I want to maximize the credit card rewards but is it wrong to want all of those rewards to benefit me personally instead of the businesses? 

Thanks in advance for any advice.

[boarder42]

you can use the points for personal use i work for a large company and we have corporate cards but the points are for us to use.  i see no difference in your situation.  I would also be travel hacking if i were you and churning lots of CCs to earn way more points from signup bonuses.

[Revelry]

Really the only differences between personal and small business CCs is marketing and some buyer protections.  The main benefit, as you point out, is keeping expenses separate for easier bookkeeping.  Go ahead and buy GCs at 5x with your Ink for personal use.
(As an aside, do you have the Ink Cash or Ink Plus?  They both earn Ultimate Rewards points so if you have the Plus you can transfer to United, Southwest, Hyatt, etc. and they're not strictly Cash Back.)

Related question: do you account for the CC rewards when filing taxes?  I've read lots of people say that personal rewards are a rebate and not taxable, but other people say that for a business it lowers your cost basis and should be accounted for.  If you have a CapOne Spark and get 2% cash back, everything you buy should be discounted 2% when calculating taxes and similar for other rewards CC.

[Ottoford]

Really the only differences between personal and small business CCs is marketing and some buyer protections.  The main benefit, as you point out, is keeping expenses separate for easier bookkeeping.  Go ahead and buy GCs at 5x with your Ink for personal use.
(As an aside, do you have the Ink Cash or Ink Plus?  They both earn Ultimate Rewards points so if you have the Plus you can transfer to United, Southwest, Hyatt, etc. and they're not strictly Cash Back.)

Related question: do you account for the CC rewards when filing taxes?  I've read lots of people say that personal rewards are a rebate and not taxable, but other people say that for a business it lowers your cost basis and should be accounted for.  If you have a CapOne Spark and get 2% cash back, everything you buy should be discounted 2% when calculating taxes and similar for other rewards CC.

Both cards just say Chase Business Ink, so I don't think I have the other benefits you mentioned.  I will have to see if there are other card options that may have more benefits.  I never really considered the rewards of the business card because I do not travel that often, but that may be changing so I think I need to look into this more closely.  I probably already missed out on savings by not looking more closely.

As I have never cashed in any rewards I have never accounted for anything on my taxes.  My accountant has never asked, but I will inquire with her about it.

Thanks