Not sure of the ethical qualities of this one, but then again I’m not sure of the ethical qualities of raising interest rates on good customers at will. Anyway, the Four-Hour Work Week blog had an interesting post recently about recycling credit card rewards points.

The specific method is a fairly simple three-step process. Set your cash advance limits to $0, in case the credit card company decides to change policy mid-stream. Failure to do this could result in a “nasty surprise,” as blogger Tim Ferris put it.

Then purchase a Visa or MasterCard gift card and use it to purchase a money order that is in turn deposited into your bank account. Alternatively, Ferris suggests that you sidestep the whole giftcard hassle and purchase traveler’s checks at a travel agency, then turn around and deposit the checks in your bank account. Of course, the key is to use the bank account boost to pay off your credit card balance in full. Carrying a balance on the card not only shoots the whole plan in the foot, but it’s financial stupidity.

It seems Ferris’ blog readers are equally crafty. In the comments section, there are other suggestions for racking up points. They include adding other people as an authorized user on your account (actually using the cards when they arrive is optional) and calling your credit card company to cancel your card. According to one commenter, the latter strategy can result in anything from 1,000 free points to one free companion airline ticket. I felt bad for a minute (but only a minute) even spreading this information, because it seems a little wrong. But if you have a vacation or business trip coming up, it just might be worthwhile if your conscience doesn’t get in the way!

Realtors these days are a little less busy than in the past. Although the spring boost will hit the housing market soon, many realtors currently have far more free time than they would like. So how is a real estate agent to survive? The Arizona Republic recently offered some ideas.

Diversify your skills. Realtors probably already have a diverse set of skills that they aren’t even acknowledging. Identify and develop some of those, and see if they might be applicable in another field or another niche of the real estate industry.

Become a professional negotiator. Help homeowners negotiate with lenders to avoid foreclosure and stay in their homes. Not only can this work be lucrative and personally rewarding, but it can also lead to referrals and more clients.

Go commercial. The commercial real estate market is staying pretty strong in most areas of the United States, so realtors should try their hand in that arena. They may find it suits them even better than the residential market.

Market mortgages. There is certainly a growing demand for reverse mortgages, as baby boomers search for income streams other than social security. Marketing these can be lucrative enough to help realtors through the slow real estate times.

This month the Internal Revenue Service released its “Dirty Dozen” list for the top tax scams of the year. The list includes both scams that cheat individuals out of their money through various deceptive tactics, and ones that cheat the government out of money with erroneous tax claims.

Here is the list:

1. Phishing. This is when fake emails sent by scammers posing as banks or companies are used to steal money from bank accounts and credit cards.

2. Fake Economic Stimulus rebates. Con artists are tricking individuals into revealing personal financial information online through email or through a phone call by posing as an IRS agent. (The stimulus is automatic, there is no reason for the IRS to call or email you.)

3. Frivolous Arguments. These are myths about tax laws including erroneous ideas like “filing tax is optional,” or “tips don’t count as income.” A complete list of these false arguments is available on taxes.banks.com.

4. Fuel Tax Credit Scams. Individuals who are not entitled to the fuel tax credit have tried to claim it.
5. Hiding Income Offshore. It is illegal to try to avoid paying taxes by keeping money in another country.

6. Abusive Retirement Plans. The IRS is cracking down on individuals who try to deposit more than the allowed annual contribution to avoid taxes.

7. Zero Wages. Phony wage reports that reduce the amount of tax owed using falsified W-2 and 1099 forms.

8. False Claims and for Refund and Abatement. Requests for tax abatements using Form 843, even though no taxes were previously paid.

9. Tax Preparation Fraud. Individuals pose as tax professionals and promise huge returns. They encourage false claims, and often take substantial portions of promised returns.

10. Disguised Corporate Ownership. Hiding business ownership and concealing or underreporting income (money laundering) is a serious offense. Terrorist funding is sometimes accomplished in this manner.

11. Misuse of Trusts. Some promise that taxes will be lower if funds and assets are transferred into a trust, yet not all trusts offer tax benefits.

12. Abuse of Charitable Organizations and Deductions. This is the misuse of tax-exempt organizations, donors controlling the use of contributions, and private tuition payments disguised as donations for tax benefit.