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Capital One Spark Cash Business Credit Card No Longer Available This card is no longer available to new applicants$0 introductory annual fee for the first year, then $95 Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy. FM Mini Review: Many cards offer unlimited 2% cash back, but this is the only business card I know of that does so. This is a good option for business owners who prefer simple cash back rewards. Earning rate: 2% everywhere Base: 2% Card Info: Visa Signature issued by CapOne. This card has no foreign currency conversion fees. Noteworthy perks: No foreign transaction fees |
I received an offer in the mail for this Cap One Spark Cash Business card but with $1,000 back after $10,000 spend in 3 months. I assume you would value this as $955 …? It has 2% cash back.
1) Is it safe to spend on taxes?
2) It is addressed to my Business #1 – can I apply as Business #2?
3) How does one get the cash back? Statement credits?
What do you guys think of this offer?
1) Yup, totally fine on taxes. I’ve used the Spark Cash a number of times for taxes.
2) Yes, that should work, though if you already have a Spark Cash with Biz #1, I’m not sure you can get another.
3) You could take the cash as statement credits, but I wouldn’t since that will mean that you won’t earn 2% back on that $1K of spend. Instead, I would request a check. Deposit that in your bank account. Alternatively, if you have a Spark Miles or Venture/VentureOne card, you can convert the cash back to miles ($0.01 = 1 mile).
I think it’s a very solid offer (we opened one under this offer in my household a couple of years ago). In terms of first year value, we’d calculate that one at $900:
$10K spent at 3% cash back (alternative) = $300
With this offer, $10K spent will get you $1,000 + $200 (2% back on $10K spend) = $1,200.
$1,200 – $300 = $900 first year value.
That’s excellent. Note that we do sometimes see an offer of $2K after $50K in the first 6 months. If big spend is not a problem, you could hold out for that. An offer like that usually comes around once or twice a year.
Thanks, Nick. I don’t have any other Cap One card. Can I hold the $1000 cash back in abeyance at Cap One for sometime later when I get a Venture card? I much prefer miles to cash.
If you do convert them to miles, is that taxable (like cash back)?
Neither the miles nor the cash back are taxable. The IRS precedent has been that credit card rewards are a rebate on spend and rebates are not considered income. A bonus earned for referring a friend is treated differently since that is not a spending rebate. Note that this is not tax advice – speak to your CPA about it.
Thanks, Nick. Can I hold the $1000 cash back in abeyance at Cap One for sometime later, maybe much later, when I get a Venture card?
Mine offer says $59 for second year fee … a misprint?
I “had” a capitol one spark card for business with 2% cash back for 4 years. As best I can tell the (one) day before they were to credit my account with the $1500 promotional bonus they killed my account (and my quick silver card as well), informing me that my account was not in good standing and would not be getting the promotion. I had done nothing to warrant the closure (no late payments, no drop in credit score, etc.). However, I did buy GCs to make the spend number of $50k along with lots of other legit spend. They did pay out the first $500 3 months earlier so I feel that it was a wash financially. Beware that they may kill your account on the eve of getting the bonus.
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