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Credit card for rental house property taxes?
Old 11-27-2018, 10:33 AM   #1
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Credit card for rental house property taxes?

Hi All,

Would appreciate a sounding board on this situation.

County fee for using credit card for property tax payment is 2.5%.

We have $7500 of total property tax payments coming up in a couple of days. $7500 x 0.025 = $187.50 total cost via credit card (tax deductible as expense since they are rental houses?).

We use the Chase Sapphire Reserve card for most purchases - and then transfer to United for air travel. $7500 = 7500 points for air travel. Best single leg points on United is 30,000 points. 7,500/30,000 = best case 1/4 of one leg of one flight.

Net - I can't come up with a good reason to pay the fee to get the points - UNLESS I combine it with signing up for another credit card that has a sign up bonus.

Any thoughts would be very much appreciated.
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Old 11-27-2018, 10:40 AM   #2
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I've always felt that the one time I would pay the fee is to meet a sign up bonus quickly.
However now that I have a card that pays 2.6% on everything, I could see doing it if the fee is 2.5% although it's nearly not worth doing.
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Old 11-27-2018, 10:52 AM   #3
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This thread might be helpful:
Paying Property Taxes with Credit Card
I don't think it's your exact scenario, but fairly close.

You situation seems simpler. Is it worth 2.5% to use the card? Seems doubtful to me unless the points are worth more than 2.5%.
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Old 11-27-2018, 11:13 AM   #4
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What card pays 2.6%? I need one!
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Old 11-27-2018, 11:14 AM   #5
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Hmmm ... seems like only clear goodness is if I can get a big signup bonus from a new card ...

I'm not even sure Chase would count taxes as a purchase ... I'm ASSUMING so ...
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Old 11-27-2018, 03:58 PM   #6
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No. Not worth the txn fee for the rewards.
This coming from my ridiculously cheap DF. You should see the effort he puts forth to save a few pennies.



Even with the Citi double cash you are still losing out with an extra .5% txn fee after you get your 2% cash back.
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Old 11-27-2018, 04:00 PM   #7
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Quote:
Originally Posted by kgtest View Post
No. Not worth the txn fee for the rewards.
This coming from my ridiculously cheap DF. You should see the effort he puts forth to save a few pennies.

Even with the Citi double cash you are still losing out with an extra .5% txn fee after you get your 2% cash back.
There is no taxation of rewards as far as I know... or is that a Texan fee ??
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Old 11-27-2018, 04:03 PM   #8
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Quote:
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What card pays 2.6%? I need one!
BOA CC with a Merrill Edge brokerage account, and sign up for their preferred rewards.
(the brokerage account also gives free trades monthly, so it's an added plus).

https://www.bankofamerica.com/prefer...erred-rewards/
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