Cash Equivalents Cash equivalents are stored-value products such as gift certificates and gift cards.
The IRS specifically defines these instruments as cash equivalents and states that their value is considered taxable income to the recipient, regardless of dollar value.
Is a gift card considered money?
Gift cards, in contrast, aren’t generally considered to be part of the measured money supply, but they are in some sense also a form of money. As a result, gift cards are not quite as fungible as currency is; as you note, they typically trade at a discount to face value.
Is a Visa gift card considered cash?
If you have a Visa gift card and are wondering if you can get cash from it, the short answer is probably not. Though the two cards are similar, only prepaid cards can be used to get cash from an ATM or to get “cash back” from a merchant. Gift cards cannot.
How can I get cash for my gift card?
Here’s the fastest way to get cash for gift cards:
- Check the balance of your gift card.
- Take the gift card to a Gift Card Exchange kiosk.
- Enter the gift card information into the system.
- Review the cash back offer and decide if you want to accept it.
- Upon acceptance, print the voucher.
What Does gift card mean?
A gift card also known as gift certificate in North America, or gift voucher or gift token in the UK is a prepaid stored-value money card, usually issued by a retailer or bank, to be used as an alternative to cash for purchases within a particular store or related businesses.