For credit card churning, there are no tax headaches because reward points aren't taxed as income. There are still many viable ways to "spend money on the credit card yet have it return back to you at a lower cost than the rewards rate."
Most of the people that I see pulling in 5 figures from churning are doing a combination of that plus bank account bonus churning. I'm talking about the kind of deal where you put in 200k for a few months and get a 2k bonus - hence the question about how much cash is around. It's a little active but you'll get closer to ~10% APY chasing those bonuses. That is taxed as income, though. Still, it's pretty straight forward on taxes since everything comes in as a 1099.
I also believe there are arbitrage strategies in crypto markets that would meet the goal easier. On the spectrum, though, that's going to be the most tax headache approach.
Happy to share some alpha with you. DM me on Twitter!
Most of the people that I see pulling in 5 figures from churning are doing a combination of that plus bank account bonus churning. I'm talking about the kind of deal where you put in 200k for a few months and get a 2k bonus - hence the question about how much cash is around. It's a little active but you'll get closer to ~10% APY chasing those bonuses. That is taxed as income, though. Still, it's pretty straight forward on taxes since everything comes in as a 1099.
I also believe there are arbitrage strategies in crypto markets that would meet the goal easier. On the spectrum, though, that's going to be the most tax headache approach.
Happy to share some alpha with you. DM me on Twitter!