Credit card for rental house property taxes?

[stephenson]

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.

 

[Sunset]

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.

 

[RunningBum]

This thread might be helpful:
http://www.early-retirement.org/forums/f28/paying-property-taxes-with-credit-card-94351.html
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%.

 

[redshift]

What card pays 2.6%? I need one!

 

[stephenson]

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 ...

 

[kgtest]

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.

 

[Sunset]

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 ??

 

[Sunset]

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/preferred-rewards/benefits-of-preferred-rewards/