Excellent post! I am an avid reader of the FW forum. I find the whole AOR stuff very exciting....but haven't tried to do one yet as dont have enough time to manage all the finances during my residency......only one missed payment can be deadly.......
I have fastened my seatbelt on this one...................good luck.

That's the way it is done exactly. You don't register with the state as a sole proprietor doing business under your own name. The income you earn on the savings account is taxed as personal income.

Someone asked if you get to write off the interest. The answer is, no. Credit card interest is treated as personal interest regardless of what you are using it for and is not deductible. I am only 60 percent sure of that answer. But if you think about it, how could it be any other way? The auditors would go nuts if people started claiming their credit card interest was for business purchases or for investments. On the other hand, I don't see anything wrong with claiming the BT fee as an investment expense on your tax return. The money is used to invest, in a way, even if its not put in a brokerage account. But the fees are pretty small in any given year so I never tried to deduct them.

WalStMonky said:There is no definition of 'credit card interest' in any IRS instruction I've ever seen. I'm not sure why this belief that 'credit card interest' is treated specially continues to be so pervasive.because at one point in time, personal interest was deductible and that was generally, "credit card interest".

IRS Tax Topic 505 Interest Expense said:You cannot deduct personal interest. Personal interest includes interest paid on a loan to purchase a car for personal use, credit card and installment interest incurred for personal expenses. Try telling the IRS that the BT was not for 'personal use' but was instead a business expense.

Hey, back in the day loans on your personal vehicle were also deductible. Why don't we ever hear that businesses can deduct interest paid on vehicle loans nowadays?

plasticity, the Sony card seems to be Chase's hottest deal at the current moment. (Heck, once in a while it's a $150 bonus). Some other Chase cards in the mega bonus thread list $50 bonuses, if that's what you're looking for. And all kinds of Chase cards have a 6 or 12mo 0% period with a $75 fee.

In my case, I really hope I get the Sony card, it was the only personal card I applied for. Not getting it might constrain my reallocation shenanigans.

Also, I got an email from Citibank saying I was approved for the CitiBusiness PremierPass card (unknown CL). I breathed a sigh of relief, not because Citibank acceptances were unexpected (I applied for 5 cards from them, after all), but getting that first business card acceptance gives me BOTH a 0% offer, AND potentially a place where I can allocate fundamentally all of my citibank credit to. Yeehaw.

i have been follwing AOR for some time now as i would like to begin my AOR in a month or so, and i would like to say that this is a well written AOR (not to say others aren't).

i have a question though. i have noticed alot of AOR's include business cards. can you apply for a business card without having a business?? sounds like a weird question but i dont know if all who apply for these are business owners or have access to the funds for which the companies purchase goods. i also understand that business cards do not have the same effect on your credit score as they are business cards and not personal (reporting of the credit limit's and usuage).

Thank you in advance!

Celta001

celta001 said:i have been follwing AOR for some time now as i would like to begin my AOR in a month or so, and i would like to say that this is a well written AOR (not to say others aren't).

i have a question though. i have noticed alot of AOR's include business cards. can you apply for a business card without having a business?? sounds like a weird question but i dont know if all who apply for these are business owners or have access to the funds for which the companies purchase goods. i also understand that business cards do not have the same effect on your credit score as they are business cards and not personal (reporting of the credit limit's and usuage).

Thank you in advance!

Celta001
See my post on the second page of this post about 2/3 the way down about applying for business cards. And yes, business cards are not reported on your personal credit report (but they do pull it for approval and you do get an inquiry).

Mike R. thank you, i read it and it answered all of my questions! i am preparing for my AOR. Right now i am in the stage of increasing all of my credit lines with soft pulls and just sorting out which apps i will fill out.

Thanks!

Celta001

Sorry for a noob question, but I just started reading about AOR 15 minutes ago
What does reallocation ( CL?) exactly means?

cyberkost said:markkundinger said:
cyberkost said:.. but don't PremierPass cards (personal certainly are, not sure about business) belong to those with "no preset limit"? I wonder how reallocation *to* such a card may work.

The PremierPass is indeed a NPSL card, and doesn't report a credit limit. I'm trebly not worried about it, for the following reasons:

1) The business card doesn't show up on the credit report at all.
2) Good chance I'll end up maxing out the balance with a BT, so the reported "high balance" will nearly match the credit limit.
3) Since I don't want to pay the annual fee, I'll end up closing/converting the card within a year.

Paranoid, as I am, I was coming at this from a different angle: what are your actions going to be if you try to reallocate CL to this PremierPass card and one CSR after another tells you smth. like "you can't really shift your CL to this card b/c it already has infinite CL (NPSL)"? Or reallocating to NPSL cards is a proven thing that leads to the increase of the "revolving credit line" (or whatever they call the threshold on the NPSL cards) and I'm just falling behind here?

I've done this twice recently.