Using a gift card to purchase repair items for a rental

[jmr5x]

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]

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]

I think you are overthinking this.  The amount deducted is the amount paid on the receipt for the purchase of the supplies.

[jmr5x]

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!