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DanS24
June 27, 2025
Solved

How to handle Bank Of America Travel Rewards in QB if used for personal travel?

  • June 27, 2025
  • 2 replies
  • 16 views

My LLC has Business Advantage Travel Rewards Credit card with Bank of Amarica. With every purchase I accumulate points. If I was to use those points in BofA Travel Center to purchase air tickets for personal use this will show in my Credit Card statement as
1. Charge for the the full travel cost even though I paid it entirely with points
2. Corresponding credit (offset) will also appear for the same amount. 
How do I track this in Quick Books upon downloading these transactions from Bank of America, as this redemption was for personal use. Are there any tax implications for me personally? 

I am using QB for Mac desktop. 

Best answer by Rainflurry

@DanS24 

 

The response from @EmanE17 must be AI-generated.  Write a check?  I don't think an actual human being read your question.

 

You can assign the same account to both the charge and the credit, so the two will offset and won't impact your LLC's financial statements. 

 

As far as the tax implications, that's a great question.  Is this a single-member LLC?  If so, then I don't think the IRS considers the rewards taxable income because, from a tax perspective, you and the business are one and the same.  The IRS views cc rewards as a rebate and not taxable income. 

 

However, if you're an employee of the company (LLC taxed as an S-Corp), then I think the rewards would be considered taxable income because the rewards are earned by the S-Corp but used by you personally and the IRS considers that taxable income - similar to a gift card or cash received.     

2 replies

E
EmanE17QuickBooks Team
QuickBooks Team
June 27, 2025

You can write a check to record the air purchase tickets in your QuickBooks Desktop (QBDT) for Mac, DanS24. I'll guide you on how to complete the process below.

 

Here's how:

 

  1. Sign in to your QBDT for Mac company file.
  2. Navigate to the Banking menu, and select Write Checks. 
  3. Select Create Check on the left panel.
  4. Fill out the fields:
    • Pay to the order of: The name that you’re paying with the check. If it’s a vendor with an open purchase order, a prompt appears to confirm whether you want to receive the items. 
    • Bank Account: The account where the money will be taken from. 
    • Date: The date when you issued the check.
    • $: The amount of the check.
    • Address: The payee's address. If you're adding a new name, you need to enter an address.
    • Memo: A note or message you want to print on the check.
  5. Once done, select Save.

 

Since you are using a business credit card for personal expenses, you can reimburse the company later by making a bank deposit.

 

Regarding your concerns about the tax implications of your transaction, I suggest reaching an accountant for accurate guidance on tax matters.

 

After this, feel free to check out this article about reconciling your accounts to ensure they align with your bank and credit card statements.

 

If you have any questions about handling personal expenses in a business account in QBDT, please feel free to notify us by adding a comment below. We're happy to help.

D
DanS24Author
June 27, 2025

Thanks for your response. Unfortunately it sounds very generic, as it doesn't really discuss the fine point of using Travel Rewards points for personal purposes.

I don't think it make sense to make a deposit to my account, as no money has effectively exchanged hands.

Points used would show up as an expense and credit from Bank Of America offsets it. 

 

I must say that I haven't gone through this process yet, so I can't tell for sure if any of these transactions would in reality show on my Bank of America Statement. I have made assumptions based on some online investigation I did on this topic and wanted to make sure that I am ready for tracking it properly should this points used pop up on my statement as expense/credit. 

Rainflurry
RainflurryAnswer
Level 11
June 27, 2025

@DanS24 

 

The response from @EmanE17 must be AI-generated.  Write a check?  I don't think an actual human being read your question.

 

You can assign the same account to both the charge and the credit, so the two will offset and won't impact your LLC's financial statements. 

 

As far as the tax implications, that's a great question.  Is this a single-member LLC?  If so, then I don't think the IRS considers the rewards taxable income because, from a tax perspective, you and the business are one and the same.  The IRS views cc rewards as a rebate and not taxable income. 

 

However, if you're an employee of the company (LLC taxed as an S-Corp), then I think the rewards would be considered taxable income because the rewards are earned by the S-Corp but used by you personally and the IRS considers that taxable income - similar to a gift card or cash received.     

D
DanS24Author
June 27, 2025

Thanks @Rainflurry  your answer makes sense. This is single member LLC and I am the owner not an employee of my LLC. 

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