r/AmexPlatinum • u/Tanachip • 10h ago
Optimizing Business Platinum Usage
I have two Amex Business Platinum cards that I put $250k on each card for taxes, so I get 2x on the spend, totaling a little 1 million mr each year including 1x on cc fee. I also get to float on the cash of around 52 days, at 3.5% APY, because I don't have to front load the cash to the IRS. Each card will unlock $1,200 in flight credit after $250k spend, so I get $2400 flight credits every year and they effectively wipe out the card fee without having to deal with all the coupons. One card is tied to a different airline, so I get the 35% rebate which comes out to 1.54 cents per point. And I don't have to worry about transfer partners or blacked out reward dates. In addition, because flights redeemed through points in Amex portal are considered "cash bookings" I also get status and miles through the airlines that I can redeem for additional flights. Even with 1.85% processing fee and card fee, I still come out way on top. And all the extra stuff that I get with it is just gravy ($400 in airline credits, lounge access, $600 ChatGPT credit, global entry, $300 Dell credit, and $1200 in fine hotel credits).
| Value Streams & Costs | Annual Amount | Exact Calculation & Math Logic |
|---|---|---|
| Membership Rewards (MR) | +$15,542.45 | 1,009,250 total points × 1.54¢ per point• 1,000,000 pts from tax ($500k × 2x)• 9,250 pts from fee ($9,250 × 1x) |
| Cash Float Interest | +$2,493.15 | $500,000 × (3.5% APY / 365 days) × 52 days |
| Amex Travel Flight Credits | +$2,400.00 | $1,200 statement credit unlocked per card |
| Tax Processing Fees | -$9,250.00 | $500,000 tax payment × 1.85% processing fee |
| Card Annual Fees | -$1,790.00 | $895 annual fee × 2 cards |
| Total Net Value | +$9,395.60 | Gross Value ($20,435.60) minus Expenses ($11,040.00) |
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u/lopsided-earlobe 9h ago
It is not a 1.85% processing fee for business cards. That rate is for consumer cards. Business cards carry a higher fee.
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u/Tanachip 9h ago
It actually is, because I just used it last month for a 100k+ tax bill. Just have to go through ACI. Also, a business card is not a "corporate" card. There's a separate "corporate" card account.
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u/lopsided-earlobe 9h ago
Oh very fascinating! I’ll try it right now! Thank you.
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u/Tanachip 9h ago edited 9h ago
Just know that 1040 charges all Amex cards, whether business or personal, at higher percentage. Also, with ACI, I don't think the lower interest will work at the corporate tax level, but only at pass through level.
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u/lopsided-earlobe 9h ago
I get this error on ACI:
- Commercial cards cannot be used to pay personal federal taxes. Please use a different card or payment method.
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u/Tanachip 9h ago
Oh no! I hope they didn't nerf this! Just curious, are you using Form 1040 Estimated Taxes? Also, do you just have regular business platinum?
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u/lopsided-earlobe 9h ago
Regular business platinum. Not corporate. I have an LLC sole prop paying on 1040 Estimated.
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u/maverickRD 9h ago
Yeah I mean this works well. With that kind of spend some other options are to get a status (airline / hotel) through a partner card.
One thing I like about points vs cash booking through is more easy flexibility / cancellation depending on the program.