> Seth wrote:
>>> But ignore the fact that they're points; suppose I purchase a
>>> $50 Hyatt check certificate for $40 (from Costco: they really
>>> are available), and then spend $200 at a Hyatt for a business
>>> stay, paying with 4 certificates. I claim that I get a
>>> deduction for $160 for the business expense.
>>>
>>> There's no income involved in buying or using the certificates, >>> is there?
>> Excusez-moi? The $160 was income and, thus, is your deduction.
> No, the $160 was never income. It was a tax-free gift. (If you
> prefer, I'll give a bogus hypothetical: there was property that
> was deeded to my ancestor pre-US, eventually I inherited it, and
> it was taken by eminent domain immediately thereafter. No income > was ever involved.)
You should be doing stand-up comedy!
Even when I accept your "bogus hypothetical", the $160 is still income. Call it tax free income, tax-exempt income, inheritance income, gift income, etc. It's still income.
Dick