Apologies for this being unrelated to the Dec grind for SNE, but I wanted to hear opinions from the SNEs on this if you have any (e.g., do you pay taxes on your Stars Monkey FPP purchases?). Oh, and maybe from Stars saying it's fixed for 2009. One time, Scotty
I'm a bit surprised no one here discussed Stars change to disallow Concierge below $10k to be bought & sent to you directly (i.e., recently we were forced to start purchase-send receipt-get reimbursed for items $500 - $10k).
For the sake of discussion, let's say that items sent to you by Stars Concierge are NOT taxable (while cash bonuses clearly are). In the extreme, for some this reduces the after-tax cash value of achieving SNE by over $20k.
An example:
- Achieving SNE leaves up to 3.2M FPPs to spend on Concierge items (after using 300k on milestone bonuses), so the possible impact on taxable income is $51.2k ($4k bonus value equivalent, which we know IS taxable) if you could have had Stars Concierge buy you that much "stuff" during the year.
- If you file a Schedule C, marginal tax rates can easily be over 40% some years (between marginal federal & state rates plus self-employment taxes).
- Those of you who are married (esp. w/ kids), probably agree it's pretty easy time to find many, many $1,000s per year in items & household expenses that could be concierged (via gift cards). The value of those items could have been received tax free before this year's change, but now they're definitely taxable income.
For those of you who will inevitably say "MY CPA said the items/gift cards are taxable", fair enough. But I think we probably all agree it's a bit of a gray area, and further, I'd be willing to guess that about 10% of Stars players declare taxes on FPP items whose value is less than $1k.
I hope Stars finds a way to revert back to being able to send gift cards and other lower cost items. There are very, very few things I could concierge for $10k+ but a ton I want/need for $1k-$3k. Assuming my CPA agrees I could legally not declare a items like a new plasma (for example) as taxable income, if they do it might nudge me into focusing all my play on Stars in 2009 and shooting for SNE vs. 75% Tilt and 25% Stars like in 2005-2008.