new spin on an older post: credit card rewards taxability: miles, points, gift cards, cashback

i have posted about this topic before, but not this exact question. the more research i do, i have more questions, which is happening now. you guys gave some amazing insight before, so thank you.

i buy tons of merchandise (which i then resell) with a credit card. i have read that if i am getting cash rewards, that is the business' money (i am a sole prop at the moment), so i have to just reduce my cogs. so it's not counting as income, but really it is taxable because my profit is increasing.

to avoid this, people suggested using miles (https://www.irs.gov/pub/irs-drop/a-02-18.pdf) or points, and then converting those points to gift cards, bc those aren't taxable. people fought about gift cards being taxable but the conclusion was that, since gift cards can't be converted to cash, it is a gray area.

another great idea was using personal card and asking business to reimburse me, and that way could keep the non taxable rewards, but since i am a sole prop and soon to be a single owned LLC without s corp election yet, i think i'd be a disregarded entity so this won't work yet.

here's my question. i have been researching credit cards, and found the capital one spark cash for business which looks to be a great contender for my business needs (i am looking for a new credit card to use.) they give 2% cashback, BUT you could choose to redeem that cashback in the form of a giftcard. so my question is, if i am given a reward that i can CHOOSe whether to redeem it in cash or gift card, and i choose gift card, does that fall under the gray area of not being taxable, or if i get audited, the irs could say, hey, that doesn't count bc you could have chosen the cash back version?

i found other cards (several thanks to reddit and this sub) that give you points you can redeem for gift cards, but they either have a foreign transaction fee or give a lower percentage than spark (some people on here helpfully listed chase ink etc, and those are all on my list. they just give a lower percentage back than spark, but if it turns out spark rewards are taxable, then i'll figure out if it's worth more to go with chase)…

any thoughts from actual accountants? i should be seeing my acct tomorrow anyway, but it seems like different accountants interpret things differently. there should be some definitive guide written somewhere. i also posted this in tax forum. any other forums i should try? i seem like i'm splitting hairs but many k a year in rewards adds up.

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