need a hand with a dilemma - re: gift cards

[brownskind]

hey people
I got a weird plea for help but since its holiday season its worth a shot
I won $750 at work which is great but I can
only get them in gift cards. The choices places like futureshop best buy , earls, Ikea but it also says I can pick any vendor that does gift cards and accepts credit cards ( so that my director can throw it on his corporate card) now I recently managed to put myself in a fair
amount of debt and I would love to put this all on my visa but I can't so I was wondering if you guys could help me convert these cards (or card it can be in increments) into cash so I can pay off my credit card

Thanks in advance

Jamil

[asuth077]

Thats weird, normally if they aren't giving cash they have to give a material gift, but tax wise gift cards are just like cash and technically you would have to claim them as such and pay tax on them.

[toyboy88]

You could try seeing if they can put it on a prepaid Visa or something like that?:dunno:

[brownskind]

Oh yes I am getting taxed on them over three months tho

I will ask about the prepaid visa on tuesday

[bspot]

Originally posted by asuth077
Thats weird, normally if they aren't giving cash they have to give a material gift, but tax wise gift cards are just like cash and technically you would have to claim them as such and pay tax on them.

Nope, a gift card is an item you bought at a store, not cash, so it doesn't count as payroll.

[bignerd]

The bay is pretty easy about taking stuff back and returning cash... You just need to buy a TV somewhere and return it for the cash. I am positive it was the Bay that my friend did this with as he wanted the money as well. Phone and ask what their return policy is.

[Spoons]

Or get it all on a futureshop or bestbuy card and just find a friend that is looking at spending a lot of money there, example a TV. He will give you $750 dollars and you give him the gift card.

[icecreamvan]

Originally posted by bspot


Nope, a gift card is an item you bought at a store, not cash, so it doesn't count as payroll.

Nope, a gift card is a near cash item, which is taxable. Even if it's not near cash, there's a $500 limit per year (max 2 gifts). Your company should be flowing it through payroll if they want to deduct it.

In case you don't believe me (http://www.cra-arc.gc.ca/tax/business/topics/payroll/benefits/gifts/menu-e.html)

[ADSA2]

HOW Much do you owe?

[bspot]

Originally posted by icecreamvan


Nope, a gift card is a near cash item, which is taxable. Even if it's not near cash, there's a $500 limit per year (max 2 gifts). Your company should be flowing it through payroll if they want to deduct it.

In case you don't believe me (http://www.cra-arc.gc.ca/tax/business/topics/payroll/benefits/gifts/menu-e.html)

Match point you. The company in question gets around it by printing their own 'gift certificates' and all they would do is buy the items on behalf of the employee, not actual gift cards. I stand corrected.