Credit Card Rewards Business
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A strategy to generate significant tax-free income by maximizing business credit card rewards and rebates. The approach leverages high business spending volume and IRS classification of credit card rewards as rebates rather than taxable income.
Key Points:
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Credit Card Rewards Strategy:
- Put large business expenses on credit cards (example mentioned: $50M/year in spending)
- Generate substantial rewards ($300,000/year in points/cash back)
- Rewards classified as rebates by IRS, making them tax-free income
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Implementation Example:
- Business owner mentioned putting significant business spending on credit cards
- Earned $300,000 annually in rewards
- Used rewards as personal income instead of taking traditional salary
- Avoided traditional salary taxation through this method
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Optimization Tips:
- Can pay taxes with credit cards for additional points
- Small processing fee but can be worth it for rewards value
- Transfer points to airline loyalty programs for better value (70% more value than direct redemption)
- Never redeem points directly through credit card website
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Key Requirements:
- Must have business with large expense volume
- Need credit cards with good rewards programs
- Should coordinate with credit card companies for large spending limits
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.