How This Man Used His American Express To Make an Infinite Money Machine (Tax Free) – #Shorts
This man effectively created a free money machine and used it to make over three hundred thousand dollars completely legally and completely tax free.
Konstantine Anikeev signed up for an American Express which offered a cash back offer on purchases made in certain grocery stores. He used this credit card to buy pre-paid visa cards which he would then use to buy money orders which he would deposit back into his bank account to pay off the credit card he used to make the purchase in the first place.
The trick was that the fees from the pre-paid cards and the money orders ended up totalling around 4% of the transaction value, 1% less than he made in cash back rewards from his Amex, allowing him to profit off the difference, this quickly added up as he churned through over 30 million dollars in gift cards.
The best part is that credit card rewards are not considered income in the eyes of the IRS so Konstantine’s profits were all tax free!
Unfortunately, if you are planning on replicating this infinite money machine the credit card companies are one step ahead of you and pre-paid cards no longer count towards cash back offers.
Support the channel on Patreon here - https://www.patreon.com/HowMoneyWorks
#Shorts
Link To The Capitalists Discord where I hang out with other creators - https://discord.gg/8MeNJ7gfSR
Music by Epidemic Sound
Stock footage by Story Blocks
This man effectively created a free money machine and used it to make over three hundred thousand dollars completely legally and completely tax free.
Konstantine Anikeev signed up for an American Express which offered a cash back offer on purchases made in certain grocery stores. He used this credit card to buy pre-paid visa cards which he would then use to buy money orders which he would deposit back into his bank account to pay off the credit card he used to make the purchase in the first place.
The trick was that the fees from the pre-paid cards and the money orders ended up totalling around 4% of the transaction value, 1% less than he made in cash back rewards from his Amex, allowing him to profit off the difference, this quickly added up as he churned through over 30 million dollars in gift cards.
The best part is that credit card rewards are not considered income in the eyes of the IRS so Konstantine’s profits were all tax free!
Unfortunately, if you are planning on replicating this infinite money machine the credit card companies are one step ahead of you and pre-paid cards no longer count towards cash back offers.
Support the channel on Patreon here – https://www.patreon.com/HowMoneyWorks
#Shorts
Link To The Capitalists Discord where I hang out with other creators – https://discord.gg/8MeNJ7gfSR
Music by Epidemic Sound
Stock footage by Story Blocks
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I’m incredibly fortunate to came across you on YouTube, someone like you in my life. I couldn't have gotten a brand new car without you. THANK YOU MYSTERY PLANET ORG ON THE INTERNET
It’s not just the cash that he made but also the points you got to consider. 😅
That’s a lot of free vacations
Can we do that now or not?
Credit card companies now know this play and you can't do that anymore. The one I'm at tells you up front that you don't earn cash back/points on gift cards or prepaid cards purchases.
He had to pay taxes later
The perfect loop donsent exi-
Watched this over 1000 times
I’m sure he’s no longer with Amex. I mean wouldn’t the Rewards Abuse Team (RAT) have closed his account(s) during/afterwards.
Either I don't understand it or this doesn't make sense
ah so this is why they put in those limitations on the blue card damn it.
It’s been patched out now
This video is incomplete and doesn’t tell the full story. This happened in 2013&2014 and they charged 6.4 million to profit about $300,000. The IRS came after them and they did have to pay some back taxes. There are several articles on this out there, some are more accurate than others.
I thought I was the only one…..
30 mil in gift cards. they didn't factor in that he got carpal tunnel from scratching the gift cards. and that surgery ironically cost about $310,000
IRS would disagree about your reward points or cash back being tax free.
I don't believe this story for one second. If you do the math on this it just doesn't make sense.
What is he spending $30 million on to get back $300k
U can only buy money orders with cash where i live. Plus they (money orders) cost money to get, not to mention the bigger they get the more they cost. I CALL CAP!!!
somewhere in the IRS rules are changing right now because of this
Visa be like “oh give the rewards card team a raise sales are soaring”
I wonder if me a mexican dude would have gotten away with it .
I have a friend who won the lottery and he went to go claim it and for “some reason” ICE found out, came and took everything from him and deported his ass.
This is still technically possible I would assume. For example, a $200 prepaid debit card may have around an $8 fee for purchase associated with it, but you can still get that 5% cashback which is $10. Profit that $2 margin which is 1% like in this video. Also, prepaid cards are not supposed to have sales tax tied onto them so don't worry about losing cash from that. If you can find a 5% cashback card, which is already a fantastic deal, make sure it can be used at "grocery stores" or "gas stations" in your area which sell prepaid debit cards. The one thing, being an impoverished fool with no credit, is my mistrust in the vague statements of "0% APR for 2 years, then variable APR from 17%-30%" or whatever. Though they say as long as payments are made in time there is no interest, APR includes FEES so is that absurdly high APR actually mostly consisting of fees which are never given a grace period or way to avoid?
So then how come people aren't doing this still
Missing a step. What's the percentage he owes on the card?
He bought lots of food to get that 5% back.
Manufactured spending doesn’t work in most case now days
Is this patched?