Look At This Tax FREE Money Story 🤫

[LegacyInvestingShow]

$310, 000 from credit card rewards and it was all legal…

Konstantin Anikeev and his wife discovered a unique loophole with an American Express card that offered unlimited 5% cash-back.

They bought $30 million worth of Visa gift cards, used those to purchase money orders, and then deposited those money orders back into their bank account.

After accounting for a 4% transaction fee, they pocketed the remaining 1% as profit.

Their strategy led to $6.1 million in credit card charges, which drew the attention of the IRS.

But when taken to court, the IRS couldn't send Konstantin to jail because credit card rewards are typically not considered taxable income.

Instead, he had to pay some taxes on the money generated, but no jail time!

[L____IIII]

This guy and the IRS doing the two most American things 😂😂

[PyroofMisterE]

That last sentence. He did everything correct, but due to him not being taxed on untaxable income, they made him pay. Gross

[gitouttamyway]

HOW DARE A COMMONER FIND AND EXPLOIT A LOOPHOLE!!!
THOSE ARE EXCLUSIVELY THERE FOR US TO EXPLOIT!!!

[pumpkinpie]

It’s a crime when a peasant finds a legal loophole.

[chrislemmon]

What gets me is they'll go after a guy like this but they won't go after somebody who's got millions and millions and billions of dollars

[mrbossx-gaming]

IRS really by trying hard to tax everything

[Buzzhumma]

Sue the IRS for malicious prosecution and harassment

[megamaze]

The fact that they made him pay taxes in the end is CRIMINAL.

[greg]

It's all legal...and sure it's not taxable...but because you were smart...you pay money on something non taxable.

[alexbordes]

Amazing how the IRS wanted to lock this guy up for making a measly $300k of non-taxable income. And THEY KNOW it’s non taxable.

[allanbador]

Eff that. Politicians do similar things and I don’t see them getting audited.

[brandiRN]

Nothing illegal was done here. This person just outsmarted the credit card company and the government.

[cheezeckez]

When rich people find loopholes, the government is paid to shut the hell up. When ordinary people find loopholes, they get fined, or sued.

This country is the fairest in the world 👍👍

[millylopez]

Probably cost him more in attorney fees to fight the government

[SuperSlimshady]

Well he wasn't doing anything illegal and loopholes aren't illegal then why was he forced to pay taxes on it if nothing illegal was being done?

[Milosan]

Don't steal. The IRS hates competition.

[fourhundreddogs]

That explains why I can't process Money Orders at work with Visa gift cards.

[mrmidnight]

Leave it to the government to write the law and say it’s not taxable. Then tax the guy for following their law 🤣

[jpeezie]

The IRS had the audacity to call him the crook 😂