that's why friends don't give friends gift cards as gifts...

Where was this picture taken? Detroit?

@PSN: kingpsyz:

Or why you use gift cards as soon as you get them. And most definitely use them if you hear any whispers about a company going under.

From my understanding (working at CC when it went under), there was almost no point in filing a proof of claim for gift cards for the same reason Tod said. The way I was explained it is that gift card claims are basically lowest on the totem poll in terms of creditors, which means if any money goes to them, it's after any and all other expenses are paid off- usually meaning nothing is left.

@WiglyWorm: Brooklyn.

Can Obama swoop in here to put gift card holder ahead of secured creditors?

Is it possible to write gift cards like this off on your taxes? I know 99.9% of the time the amount isn't worth it, but is is possible in those instances where it is?

I know someone who returned a console he got as a gift and got the value on a gift card, that would have been a painful couple-hundred dollar loss if they had then gone under/bankrupt.

@Reid Antonacchio: I hope that is sarcasm.

@Pixel:

Well, what are the odds anyone reported the gift card as income in the first place?

@Reid Antonacchio: Probably, but he's currently busy saving Jimmy and Lois from a burning building.

@Skankingmike: Its not sarcasm he has done it on some of the bailouts

@Reid Antonacchio: Please be joking. If you're not, come back here and defend yourself so we may taunt you a second time.

@Reid Antonacchio: Can Obama swoop in here to put gift card holder ahead of secured creditors?

No, but he'll let you apply the balance toward an extended warranty on a new GM vehicle!

@philmin: PersonX gets paid. Income taxes are deducted. X buys console from KBToys with paycheck. Console breaks. X returns to KBToys, finds out they're out of stock, gets gift card for refund.

*possible*....

@Reid Antonacchio: Win.

I think, like Casinos, by law, companies should be required to have enough assets on hand in a special account, to cover all the gift card balances out there.

I find that gift cards are excellent for scraping wallpaper and spreading sheetrock mud.

@tbonekatz: I like to use them to scrape frost off my car windows.

@ShadowFalls: I bet the creditors think they should have the money to pay off their credit cards, bad checks and merchandise that was extended to them. Oh yeah, that's why they are filing bankruptcy!
All the people that fronted them merchandise (toys) and then watched them sell their property off at 80% off. I know those people would like to get their money back as well! But the accounts are empty, same as the Gift Card accounts!
Wonder if you bought a gift card with a credit card, still had the gift card, could you file a charge-back since they won't honor it? It might be a reason to purchase gift cards with a credit card (not a stores Credit card obviously!)

@ShadowFalls: Good plan - except it needs more details. What happens if I have a gift card with $500 on it and I lose it? How long does the store have to sit on that $500 before they can write it off?
What happens to that $500 if the store goes out of business?

1.) Gift Cards should have a cash value of no less than 90% of their store value and can be cashed out at any time. (Stores can create "Refund" or "Courtesy" cards that have no value outside of the store, but cards bought with cash/check/credit must be able to be refunded, minus a processing fee (up to the 10%).

2.) Gift Cards do not expire

3.) In the event that a store files bankruptcy, Gift Card holders are given one year from date of filing to use/cash out their gift card, either at a store or an online site.

Just some thoughts...

Well, I could make a hat with it.
Or, a brrrroach!
Or, a pterodactyl!

@Coach Cal Is My Dream Weaver: he's referring to how Obama's trying to lower the standing of Chryler's senior debtholders in the bankruptcy foodchain. If he's successful, the country could be in a lot of trouble

Sell them on Ebay.
(then read about yourself here.)

@craptastico: gee really?

turn them into "art" that's what I did with my AOL cds

@craptastico: Watch what you say...the White House will threaten you with the full power of the Press Corps.

Bay Ridge, Brooklyn - 86th Street between 4th & 5th ave, to be exact :) I was there when people were tearing through all the crap that was thrown out. There was a pile about 2 feet high. That pic is from the morning after.

@mrsultana: pteruh what?

@snowburnt: i used to stick them in the microwave. that was a pretty cool light show.

@snowburnt: I loved AOL cds when they had good jewel cases or the plastic fold over cases. Didn't have to buy cases especially since I'd go to check my PO Box and thenwould hit the post office garbage to fish out all of the other discarded CDs for the cases...

@philmin: Why would it be income? IF you purchased it, it was paid with post-tax dollars.

If you received it as a gift, gifts are not classified as income. (gifts may be subject to gift tax, if made in excess of $13,000 per year per recipient).

I think a gift card would be considered a nonbusiness bad debt. It's deductible when it's proven worthless (which would be AFTER bankruptcy is completed, or when you get your settlement from the bankruptcy court). It's kind of complicated, and takes the character of a capital loss (not a deduction against ordinary income).

If you have an accountant, it's something to ask him. If you do your own taxes, it's probably not worth the hassle for a $20 deduction.

Here are some possibilities:

Use it to buy a Chrysler
Use it at Circuit City
Use it to pay premiums with AIG
Use it for a down payment on a house

See? the possibilities are endless.

@craptastico: exactly

@PSN: kingpsyz: Huh? The problem here is people not using them and a company going bankrupt. Gift cards are great gifts in many cases.

@Franklin Comes Alive!: BINGO. Our daughter gets a lot of gift cards as gifts (long story) and if she can't use her gift cards within a few weeks, we buy it from her for the cash value and use it for practical stuff.

@tbonekatz: They don't hold enough mud and are too narrow.

Signed,

Literal Fatcop.

@Coach Cal Is My Dream Weaver: Is there someone else up there we can talk to?

@craptastico: And he won't prevail. What he will do is draw lawsuits from senior debtholders that will keep Chrysler in limbo for years. I give him points for trying to be Superman, but it's naive to think that the courts will go along with it. Especially this Supreme Court.

@EarlNowak: Yup, you're right, normal birthday and Christmas gifts aren't taxable, otherwise the IRS would be standing outside WalMart on Thanksgiving night instead of chasing down the Swiss.

Umm yeah...talk about being last in the creditor line when the few measly dollars are handed out...

You can always try to sell them somewhere as antiques...

@Charlotte Rae's Web: YMMV but I gift cards are poor gifts because they offer no advantage over cash, and no more thought either. Its basically like cash without a choice of where to spend it.

@ShadowFalls: but then theres no point in a gift card for them becasue they cant spend it till you do. They like them cause its "free money" with no guarantee someone will use it.

@mrsultana: where did you get that dress? And those shoes?

@WiglyWorm: A Nine West is a tad fancy for Detroit, haha. I work there and I'm excited we have a Ben & Jerry's...

@redkamel: I always thought this, too, until someone offered me this jem: some people can't give cash since they don't have any, but they can put a gift card on their credit card :(.

@redkamel: Still collect interest on the account. :)

Please, no sympathy here. It's not like it wasn't known that K-B was going out of business but still these people still didn't use their cards. They get nothing because they didn't get off their duffs and go buy stuff when they could.

I used to buy collectible dolls on-line through K-B Toys, and noticed that every so often I would get newsletters from the company, as well as a duplicate copy under the name of EToys. The two web sites were identical, save for the name of the entity itself. Recently, I got a new email from the "New and Improved EToys", announcing that it had reopened online. This leads me to wonder if the organization has pulled a CompUSA, whereby it reorganized into a strictly mail order business. I wonder--was the establishment of EToys merely a front to allow the B&M stores to go bankrupt, with the parent company funneling the unsold assets into the new company? In other words, was this set up in this fashion to allow the b*tards to walk away with the cash?