"Enhancements" to Hilton Business AMEX

[CalGalTraveler]

Our county does take cc but the rate is higher than the IRS 3rd party payment portals which are less than 2%.

The other bummer on our county is that they don't let you split payments.

 

[CalGalTraveler]

If you overpay IRS you can opt to buy up to $5k in I-bond. $5k more than $10k per year max. I bonds are really great deal right now.

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www.forbes.com

 

[brp]

Our county does take cc but the rate is higher than the IRS 3rd party payment portals which are less than 2%.

The other bummer on our county is that they don't let you split payments.

Yeah, we are paying more than the IRS portal, but still reasonable for what we get. mrs. brp pays this, so not sure if we could split, but we put it all on Hyatt anyway.

Cheers.

 

[Nowaker]

how do u pay property tax with credit card? Do you pay via county portal?or have u found a lower rate via third party?

My county allows to pay with CC using a third party. The extra commission is pretty low, so I've always used that option to churn.

 

[brp]

Yeah, we are paying more than the IRS portal, but still reasonable for what we get. mrs. brp pays this, so not sure if we could split, but we put it all on Hyatt anyway.

Cheers.

Just checked, and we are 2.25%. Certainly more than PayUSATax, but not terrible.

Cheers.

 

[CalGalTraveler]

@brp your county is better. Our county charges .25% more or 2.5% for credit card. Is it worth it to use a credit card? IDK.

On $10k in taxes that's $250 (at 2.5%) to get one free night. Add the AF of $150 = $400 but I can get the $200 Hilton credit. So $200 for a fee night.

Alternatively I can pay county directly without a fee and spend IRS estimated tax or tax due at 1.84% of $10,000 (apples to apples) costs $184 - $50 Hotel credits = $134 FNC. Of course if I use regular spend at stores I could get there for free but it will take until mid-summer to rack up $16k.

California Franchise Tax Board for personal and business is 2.3%

Worth it?

FYI...Plastiq which allows you to pay checks using a credit card or debit card is now 2.9%. We used to pay some bills when rate was lower but now that's not worth it.

 

[brp]

@brp your county is better. Our county charges .25% more or 2.5% for credit card. Is it worth it to use a credit card? IDK.

On $10k in taxes that's $250 (at 2.5%) to get one free night. Add the AF of $150 = $400 but I can get the $200 Hilton credit. So $200 for a fee night.

I'll use an example of $20K since that's a Hyatt Category 5 hotel and covers, for example, all the places in San Francisco that can be quite expensive during the week.

At 2.25%, this is $450. Some nights can be more than this, but this is getting close to a breakeven. So it may not be fully worth it, and especially at 2.5%.

One reason we do it is that spend counts for Hyatt status, so it adds some value to the calculation.

Cheers.

 

[CalGalTraveler]

I'll use an example of $20K since that's a Hyatt Category 5 hotel and covers, for example, all the places in San Francisco that can be quite expensive during the week.

At 2.25%, this is $450. Some nights can be more than this, but this is getting close to a breakeven. So it may not be fully worth it, and especially at 2.5%.

One reason we do it is that spend counts for Hyatt status, so it adds some value to the calculation.

Cheers.

I heard Hyatt status has a lot of nice perks.

At least the Hilton FNCs are uncapped so we can get great value at Waldorf and Conrad's which can cost $800 or more per night.

Just got our IRS bill from accountant. We will pay that at 1.84% and pay the rest with regular spend at stores for free.

Our 2 Aspire annual free nights come in around June so this spending would time nicely with those expirations to make a 3 night stay at a Waldorf.

 

[GT75]

It worked! MF prepayment using a hidden URL triggered the credit. And still in Q1/2024. :-D

Thanks for this. Even though I think that I have/had a plan, I used your method on my Surpass card ($50/quarter to pay Hilton which Valdoro MFs has qualified in the past)

Thanks @Nowaker, mine also worked. I used your method to prepay $50 MFs on 4/3/24 and received the Hilton Statement Credit on 4/5/24. This was for Valdoro MFs which has always given me the credit in the past.

I know that several TUG members have asked how to prepay MFs in the past.

 

[Eric B]

I prepaid $60 in MF for The Quin using my business AMEX and the method described by @Nowaker. That triggered the credit for this quarter. Just missed the last quarter credit, but good going forward.

 

[90_Min_Sales_Pitch]

I have the Surpass, Aspire, and Business Card. Initially I was irritated with the update, expecting something more lucrative with the delayed refresh. If Hilton had never had a business card, and this was its launch, 5X on everything would be seen as very reasonable. I've decided to keep it, where we can spend as little or as much as we need to keep our HH points flush. I've thought of putting $30K or $60K on the Aspire instead, but I like keeping the Aspire as a personal card, and I wouldn't be able to utilize the credits with a 2nd Aspire.

 

[Zenichiro]

I have the Surpass, Aspire, and Business Card. Initially I was irritated with the update, expecting something more lucrative with the delayed refresh. If Hilton had never had a business card, and this was its launch, 5X on everything would be seen as very reasonable. I've decided to keep it, where we can spend as little or as much as we need to keep our HH points flush. I've thought of putting $30K or $60K on the Aspire instead, but I like keeping the Aspire as a personal card, and I wouldn't be able to utilize the credits with a 2nd Aspire.

It’s not bad as a catch all. We tend to alternate our vacations every year. HGV one year then Hilton hotel(s) the following. So we borrow HGV and have a nice 10 day vac then the following year Having amassed a lot of HH points & FNC, take a nice HH vac.

I will most likely keep it to use on everything else but I will miss the extra free night. Hilton will just have to get used to multiple gift cards at check out. Lol

 

[Nowaker]

On $10k in taxes that's $250 (at 2.5%) to get one free night.

I don't follow your maths, but what I see for sure is you're not accounting for the value of HH points received. FNC is not everything. You should look at my formulas and substitute 0.0086 for your HH valuation for a full picture, and then subtract the CC fee commission. (And for a complete result, also account for the value of CC fee spent as you earn HH on that too)

Here's how I'd approach this topic on Aspire card, which has a target of $30K for FNC#1 valued $621.68, assuming tax to be paid is $10K and commission is 1.82% (payusatax.com):

Aspire: (30000 × 3 × 0.0086 + 621.68 - 10000 × 0.0182) / 30000 = 0.040456 = 4% CB

$30K spent total, $10K of which requires paying a commission. Effective cashback is 4%.
Annual fee isn't part of the equation because AF on Aspire pays for itself with Hilton credits ($400), flight credits ($200), and more ($189 on Clear if you use it).

And entire $30K on federal taxes (specifically, $29463.76 on taxes, and the remaining $536.24 on CC commission):

Aspire: (30000 × 3 × 0.0086 + 621.68 - 30000 × 0.0182) / 30000 = 0.02832266667 = 2.8% CB

And an entire $45K on federal taxes for FNC#2 threshold on Hilton Business before 6/30:

BusinessFNC2: (45000 × 5 × 0.0086 + 621.68 − 45000 × 0.0182) / 45000 = 0.03861511111 = 3.9% CB

Aspire $30K per FNC, or Business $45K for FNC#2 (assuming you can make it) is still much better than using a generic 2.5% cashback card from Alliant where you're only making an effective cashback of 0.68%.

I can only reach Business FNC #1, not #2, so I'm going to pay with Aspire. Not my 2 Surpass cards, because I can reach their $15K thresholds with 6x grocery category.

 

[CalGalTraveler]

I agree my math is simple. I took points out of the equation because I won't know the final valuation until they are used (plus it's complicated). Your calculation improves upon my back of the envelope.

The Aspire credits don't work for me because I pursue the FNC on the Surpass at 15k points which is a lower bar. Currently there is $45 if all Hilton Credits applied so $250 fee - $45 = $205. Not bad if I can find an FNC worth more than that. (not including points generated, I know).

Ultimately we paid the IRS $5500 @ 1.82% instead of 2.5% so our net incremental cost was $100 - $45 Hilton Credit = $55 for an FNC + $9,500 spend (no transaction fee - Some was annual MF some business travel where we were reimbursed). Points generated make it even sweeter.

If I want another FNC I will pursue a 2 player surpass because I can get 2 FNCs for the spending of 1 on Aspire. These cards are great.

Our only hesitation is pursuing more Chase Inks for the business which have great signup 120,000 bonuses with no AF if I work in-branch with the business relationship manager. Chase works for Hyatt points transfers, United flights and a few others.

 

[Nowaker]

Our only hesitation is pursuing more Chase Inks for the business which have great signup 120,000 bonuses with no AF if I work in-branch with the business relationship manager. Chase works for Hyatt points transfers, United flights and a few others.

SUB > everything, always!

 

[CalGalTraveler]

@Nowaker "SUB" meaning?

 

[letsgobobby]

sign up bonus

 

[frank808]

Sign Up Bonus

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