Author Topic: Using a gift card to purchase repair items for a rental  (Read 1028 times)

jmr5x

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Using a gift card to purchase repair items for a rental
« on: March 07, 2016, 11:58:09 PM »
Let's say that I needed to purchase $1000.00 dollars worth of supplies to do a bathroom tile job at a rental.  How would you handle the tax portion if the supplies were paid for by a gift card or in store credit?  We will add to the scenario that the gift card was purchased for less than face value.

jmr5x

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Re: Using a gift card to purchase repair items for a rental
« Reply #1 on: March 08, 2016, 03:33:04 PM »
I'm guessing the correct answer is to deduct the amount paid for the gift card? I would really like to save that extra 10% since the card was purchased for say 900$

iamlindoro

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Re: Using a gift card to purchase repair items for a rental
« Reply #2 on: March 08, 2016, 03:45:10 PM »
I think you are overthinking this.  The amount deducted is the amount paid on the receipt for the purchase of the supplies.

jmr5x

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Re: Using a gift card to purchase repair items for a rental
« Reply #3 on: March 09, 2016, 12:16:47 AM »
So if someone was to spend 10,000 on renovating rentals per year and paid for them exclusively with gift cards that were purchased for 20% discount they would be sitting pretty!