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Ethical Hackers Donate 1,000,000 Air Miles To Charity (offensi.com)

Posted by EditorDavid on from the certified-charitable dept.

An anonymous reader writes:Certified ethical hackers at Offensi.com identified a bug allowing remote code execution on one of United Airlines' sites, and submitted their findings to the airline's "bug bounty" program. After a fix was placed into production, their team was awarded 1,000,000 Mileage Plus air miles, which they say was accompanied by an email informing them that the IRS would consider their award as $20,000 of taxable income. "If after evaluating the taxable amount you choose not to accept your award, you are also able to donate your award to charity," the e-mail explained. The hackers ultimately chose to distribute their air miles among three charities -- the Ronald McDonald house, the Muscular Dystrophy Association, and the Casa de Esperanza de los Ninos Organization.
Another security researcher complained in November that United failed to close a serious vulnerability he'd identified for almost six months.

81 comments

  1. What's wrong with that? by Anonymous Coward · · Score: 0

    They did work, they got paid (in-kind, not with money). Still taxable.

    1. Re:What's wrong with that? by K.+S.+Kyosuke · · Score: 3, Insightful

      I thought we invented money to fix the problems with barter?

      --
      Ezekiel 23:20
    2. Re:What's wrong with that? by Anonymous Coward · · Score: 0

      Maybe the cure is worse than the disease?

    3. Re:What's wrong with that? by Sarten-X · · Score: 1

      That doesn't mean we've eliminated barter. We just standardized its measurement with fungible certificates.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    4. Re:What's wrong with that? by tomhath · · Score: 1

      And then we wrote laws to close the loopholes which allowed people to get tax free compensation from their employer.

    5. Re:What's wrong with that? by fustakrakich · · Score: 1

      Well hell! Then so is the discount you got on those new tennies. If you pay less than MSRP, then you must declare it and pay the tax, right? Sorry, we can't have people skimming from everything we do.

      --
      “He’s not deformed, he’s just drunk!”
    6. Re:What's wrong with that? by Anonymous Coward · · Score: 0

      yes, but then we invented mileage awards to fix the problems with money.

      then we invented taxes to fix the problems with mileage awards.

      now on to prison time to fix the problems with taxes.

    7. Re:What's wrong with that? by ShanghaiBill · · Score: 1

      And then we wrote laws to close the loopholes which allowed people to get tax free compensation from their employer.

      Except for health care, pensions, and vacation time. If there were no tax benefits, how many people would want their employer to choose their doctor?

    8. Re:What's wrong with that? by AthanasiusKircher · · Score: 5, Interesting

      I thought we invented money to fix the problems with barter?

      Actually, not really. This is a myth made up by economists (well, specifically Adam Smith, though it ultimately goes back to Aristotle). Anthropologists have disputed this with exhaustive surveys for at least a century. It's really only economics textbooks that keep telling this fairy tale.

      Money emerged in most societies as tokens to deal with pre-existing systems of credit. There's no historical evidence that barter in the classic sense (e.g., "I'll give you ten chickens for those two goats!" "Nah, but if you throw in twelve chickens and that nice basket, I'll take it!") has been a predominant form of exchange within a human society. It relies on a myth that people in primitive cultures would stockpile goods they didn't really need, ready to trade when a buyer arrived... but that sort of thing doesn't tend to happen in primitive societies. It also tends to depend on this weird idea that two people would always have exactly what others wanted -- e.g., "I'll give you bread for meat," but what if you don't need bread? So then you need a third or fourth or fifth party in this transaction until everybody gets something they want.

      By the time you get people able to stockpile goods, you usually have a pretty elaborate system of credit going. Money then emerges as a way of denominating that credit. (Societies not advanced enough to have stockpiled goods generally just depend on gift transactions with elaborate notions of levels of indebtedness or rely on leaders to divvy up goods and resolve disputes, rather than requiring bartering for goods.)

      Anthropologists have usually observed barter mainly in unusual transactions taking place BETWEEN societies, e.g., with a neighboring tribe you may not have much contact with and therefore can't trust within your usually systems of indebtedness. Barter sometimes also emerges on a limited scale in more advanced societies (who are used to money) when currency becomes scarce, though generally an alternative currency emerges and/or credit and debt-recording systems actually take over pretty quickly for most transactions.

      Whether money emerged as a way of standardizing private debt transactions or as a leader/government-imposed way of regulating debt instruments is probably dependent on the society... but there's really no evidence that a full-fledged "barter economy" ever existed. (If you think I'm making all this up, there are plenty of articles and books out there -- mostly not written by economists, but by historians or anthropologists -- about this. A recent article in the Atlantic is perhaps one place to start. One reason this probably hasn't caught on among economists is that it challenges fundamental notions of capitalism, which rely on the idea that "free markets" will work correctly because we're all just "bartering" in the end, with currency as a medium of exchange... and like these mythical bartering transactions, monetary imbalances should ultimately level out to fair "markets" without intervention. If currency instead emerges as a debt standardization instrument, sometimes related to government intervention or regulation, that's a vastly different story to the beginning of economics.)

    9. Re:What's wrong with that? by Anonymous Coward · · Score: 0

      In theory nothing.... in practice everything.

      The airline purposefully gave them a bounty with no immediate monetary value knowing full well that they would be taxed on its hypothetical value. Which left them with two options, give it away or pay money out to keep the miles you might or might not ever get around to using. Personally I read that as "We don't actually want to give you anything so we are going to give you something in a way that encourages you not to take it".

    10. Re:What's wrong with that? by Mikkeles · · Score: 1

      So they could have donated x air-miles to the IRS as payment in kind?

      Otherwise, it's just a scam.

      --
      Great minds think alike; fools seldom differ.
    11. Re:What's wrong with that? by K.+S.+Kyosuke · · Score: 1

      That is actually very interesting. I do not think you're making this all up. Pretty good points for a long-dead guy!

      --
      Ezekiel 23:20
    12. Re:What's wrong with that? by Anonymous Coward · · Score: 0

      So I guess you report any birthday gifts you receive to the IRS so that you can pay tax on them, right?

    13. Re:What's wrong with that? by Anonymous Coward · · Score: 0

      My employer pays a tax gross-up on things like small bonuses ($500 Amazon gift card) or other compensation that is not tax exempt (certain relocation expenses), so I get the perk and the money used to cover taxes on it.

    14. Re: What's wrong with that? by Anonymous Coward · · Score: 0

      As one of the people who got over a million miles from the United bug bounty, I can tell you /exactly/ what is wrong with it.

      First, United picks the value. They value the miles at 2c/mile. Which means that you can actually lose money using the miles to book a flight. I have to now estimate my tax bracket, figure the taxes on the miles, multiple that out of the cost to figure out my actual cost of using miles and for many, many flights it's not worth it--it's literally cheaper to just pay cash. So the miles aren't nearly as useful as you'd think. The counter argument is that for /some/ uses of the miles, they are a much better deal that cash. But I don't want to have to think about analyzing when my "free" miles aren't actually free or not, I'd like to be able to just use them.

      Second, United disallows you from selling or trading miles. It's literally against their terms of service and they claim the right to cancel your account if you do it.

      If you want to try to cash out, your best bet is to use one of their stupid shopping mall things that let you spend miles. But those are at an AWFUL return, worse than even bad flights and again, I would literally lose thousands of dollars if I were to do that.

      So there's no reasonable way to liquidate the miles into cash I can use to pay the taxes, and the IRS doesn't accept miles as payment for taxes, so all around it's a pretty frappe situation.

    15. Re:What's wrong with that? by Obfuscant · · Score: 1

      Except for health care, pensions, and vacation time.

      IIRC, the value of my health insurance (not health care -- my employer is not a hospital or doctor so I don't get my health care from them) was a line item somewhere on my taxes. I didn't bother checking what it did.

      But for pension -- I haven't gotten that money yet, and I will be taxed on it when I do. It's not "tax free compensation". And the wages I am paid while on vacation are taxed at the same rate as wages while I am not. There is no "tax free compensation" there.

      The closest that vacation is tax-free is when I choose to take a vacation while on business travel, so the employer pays for the travel to and from and I am not taxed on that money, but he's paying that money anyway. The rest of the vacation is on my own dime, taxes at the standard rates when it was income.

      If there were no tax benefits, how many people would want their employer to choose their doctor?

      I can get a tax break if I let my employer choose my doctor? Wow. News to me.

    16. Re:What's wrong with that? by Anonymous Coward · · Score: 0

      Re: "...only economics textbooks that keep telling this fairy tale."

      Well it's good to know that that the next generation of economists will be properly educated from an authoritative knowledge source. Perhaps the dismal science will finally get some respect. Or not!

  2. Gov't discouraging white-hat behavior by Anonymous Coward · · Score: 4, Insightful

    the IRS would consider their award as $20,000 of taxable income

    Yet another reason to sell exploits on the black market instead of disclosing them responsibly.

    1. Re:Gov't discouraging white-hat behavior by PvtVoid · · Score: 1

      the IRS would consider their award as $20,000 of taxable income

      Yet another reason to sell exploits on the black market instead of disclosing them responsibly.

      Or the scumbags at United could pay them in actual money.

    2. Re:Gov't discouraging white-hat behavior by wonkey_monkey · · Score: 1

      Why not complete the chain of logic and decide that people asking you to pay for stuff is yet another reason for you to just steal what you want instead?

      --
      systemd is Roko's Basilisk.
    3. Re:Gov't discouraging white-hat behavior by Ogive17 · · Score: 1

      They do work, get paid, pay taxes.. that's life.

      The real bitch is the airline not actually paying in cash, but something they consider a cash equivalent.

      --
      "Action without philosophy is a lethal weapon; philosophy without action is worthless."
    4. Re:Gov't discouraging white-hat behavior by ShanghaiBill · · Score: 1

      Or the scumbags at United could pay them in actual money.

      Money is taxable. Also, FF miles can be exchanged for money (which is why they are taxable).

    5. Re:Gov't discouraging white-hat behavior by Anonymous Coward · · Score: 3, Insightful

      You can pay the tax on money with part of the money.
      You can't pay the tax on miles with miles.

    6. Re:Gov't discouraging white-hat behavior by PPH · · Score: 1

      Is Offensi.com a US entity? Because if they are foreign, the IRS doesn't get diddly. If they are Irish, tax (10%) only applies to income earned in Ireland.

      Time to move your corporate 'home' overseas.

      --
      Have gnu, will travel.
    7. Re:Gov't discouraging white-hat behavior by Anonymous Coward · · Score: 0

      If miles can be exchanged for money why in the world would they donate them instead of taking the money? Maybe they don't want the IRS to look at them too closely. No such thing as an "ethical hacker"

    8. Re:Gov't discouraging white-hat behavior by Anonymous Coward · · Score: 0

      You pay taxes on that too.

      Well assuming you declare it anwyway. What did they get Capone for again?

    9. Re:Gov't discouraging white-hat behavior by PetiePooo · · Score: 1

      This.

      I suspect that, by the time they would have converted the miles to dollars, their net profit was negligible. Can anyone point us to the exchange rate for United miles to USD (specifically, how much you can sell a million miles for)?

    10. Re:Gov't discouraging white-hat behavior by Anonymous Coward · · Score: 0

      Really? I'm pretty damn sure that the use agreement explicitly denotes that they have no intrinsic cash value. The taxation is due to an internal IRS rule, not due to the value assigned to them by the airline. You can sort of get there by exhanging for limited use discount cards at specific vendors, but those cards also hold that they have no cash value.

      There is no way to get to cash from miles.. and you are specifically prohibited from doing things like exchanging tickets purchased with miles for money.

      I don't fly United because their service sucks donkey balls. This is more evidence of the same.

    11. Re: Gov't discouraging white-hat behavior by Anonymous Coward · · Score: 0

      No, no you can't. I posted a liger explanation above, but United specifically doesn't have a way to directly turn miles into dollars via any mechanism that doesn't have you losing money to the IRS.

    12. Re:Gov't discouraging white-hat behavior by Obfuscant · · Score: 1

      I suspect that, by the time they would have converted the miles to dollars, their net profit was negligible.

      And had they actually used the miles, their profit would be negative. United has some very high co-pays for award travel. So much so that it is almost cheaper to just buy an economy ticket in the first place.

    13. Re:Gov't discouraging white-hat behavior by eric_harris_76 · · Score: 1

      Not just white hat behavior, of course. Any mutually-beneficial exchange.

      Well, any _documented_ mutually-beneficial exchange. Not a problem, if you operate in the underground, er, "undocumented", economy.

      Unless you get caught not forking over a piece of the action. Then it can be a big problem.

      --
      There's no time like the present. Well, the past used to be.
  3. but who gets the tax deduction by Anonymous Coward · · Score: 0

    Does United get the tax deduction for donating the miles, or do the hackers?

    1. Re:but who gets the tax deduction by Sarten-X · · Score: 1

      I'm not familiar with United's specific program, but others I've seen would have United take the expense, then the hackers receive the $20,000 taxable income and immediately donate it to charity, allowing them to record a $20,000 deduction from their taxable income.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    2. Re: but who gets the tax deduction by Anonymous Coward · · Score: 0

      United probably and certainly not the hackers. This is the website they send you to donate your winnings: https://secure.unitedmileageplus.com/CharityMilesSSO.jsp

    3. Re:but who gets the tax deduction by Anonymous Coward · · Score: 0

      Isn't that the same as just not making the money in the first place? It's a deduction rather than a credit, and the US federal rates are marginal (read: earning $1 of income can't ever lead to a loss).

    4. Re:but who gets the tax deduction by CanadianMacFan · · Score: 1

      I don't know about the American system but under the Canadian system the additional system the extra income would be taxed at whatever marginal rate your income bracket is, which gets higher as your income goes up. Charitable donations get a credit (or deduction - I'm not a tax accountant) equal to a fixed percentage of the donations no matter what your income is. I think it's about 15%. So unless you have almost no income to begin with taking the income and claiming the charitable deduction would still have you end up paying some additional taxes.

    5. Re:but who gets the tax deduction by rmdingler · · Score: 1
      The maximum federal corporate tax rate on income in the U.S. is just 35%, and though the state corporate income tax can vary(N.Carolina 4% to Iowa 12%), taxable income is after deductions.

      Limitations on Deductions

      In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks. Contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income (computed without regard to net operating loss carrybacks), however. Exempt Organizations Select Check uses deductibility status codes to indicate these limitations.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    6. Re:but who gets the tax deduction by ShanghaiBill · · Score: 1

      Does United get the tax deduction for donating the miles, or do the hackers?

      United can deduct the miles as a business expense once they are used, but only their actual costs of delivering the service, not the cash value of the miles. The hackers can deduct the charitable donation, but only if they also declare the receipt of the miles as income, so they would just cancel out. If the final recipients of the miles are 503c's, then they can use the miles tax-free as long as they use them for charitable purposes.

      So the only net cost to the taxpayers would be United deducting the cost of the extra fuel from their taxable income, and even then, the fuel would still be subject to excise tax.

    7. Re: but who gets the tax deduction by Anonymous Coward · · Score: 0

      good question. I only know one part of the answer: not the hackers. The only way to receive the miles is by submitting the appropriate tax forms. If you want to make a donation then United takes care of it all.

    8. Re:but who gets the tax deduction by pla · · Score: 1

      Isn't that the same as just not making the money in the first place?

      Normally, yes - The tax rules around charitable donations provide exactly zero incentive to donate earned money to charity - By doing so, you've effectively given yourself a pay-cut, and nothing more.

      In the case of something you won, by donating it directly to charity, you still get to keep the tax deduction. So basically, the current arrangement involves Offensi getting to "keep" roughly a quarter of that award in the form of deductions against their "real" income (assuming they have enough to matter).

      Totally fuck United for giving out their scammy in-house currency rather than real money, but at least the good guys get something for their trouble here.

  4. taxable income for limited miles? by Joe_Dragon · · Score: 1

    taxable income for limited miles?

    1. Re:taxable income for limited miles? by fustakrakich · · Score: 1

      Yes, if you get "10% off at Pennys", the IRS agent at the door will collect a tax on the money you saved.

      --
      “He’s not deformed, he’s just drunk!”
    2. Re:taxable income for limited miles? by sumdumass · · Score: 1

      How exactly does that compute? I mean they weren't getting a 10% discount on all future tickets, they were getting the equivalent to a cash card or a car. This is not to mention that there is usually a dollar threshold before the IRS actively cares about winnings being reported by people other than yourself.

      If you must compare it to something other than work and compensation for the work, compare it to game show or casino winnings.

    3. Re:taxable income for limited miles? by fustakrakich · · Score: 1

      Facetious

      Sorry, sometimes the magic works, sometimes it doesn't. Whatever, we are letting the IRS run out of control. And really, they can tax what they want, but they should have to do the paperwork, put the 'Service' back into the name.

      --
      “He’s not deformed, he’s just drunk!”
  5. what happens if the IRS says bug boueny are w2? by Joe_Dragon · · Score: 1

    what happens if the IRS says bug boueny people are w2 employees?

    1. Re:what happens if the IRS says bug boueny are w2? by Anonymous Coward · · Score: 0

      Then it will just become more of a burden in time and resources on the employer that's paying the bounty. For the researcher it doesn't matter either way, any income is taxable, even money you win at the track.

  6. United did disclose it... by Lumpy · · Score: 1

    The problem was the Flight that had the information was delayed to the point that it missed it's connecting flight so It's stuck somewhere wandering around the Denver Airport.

    United has the WORST scheduling ever. they always try and schedule flights way too close together to ensure that any delays will result in missed flights.

    --
    Do not look at laser with remaining good eye.
    1. Re:United did disclose it... by Nkwe · · Score: 2

      United has the WORST scheduling ever. they always try and schedule flights way too close together to ensure that any delays will result in missed flights.

      United doesn't schedule your connections, you schedule your connections (or your travel agent / website does on your behalf). Yes, United has many issues, and they have many delayed flights (along with the other airlines), but if you purchase trips with tight connections and don't expect to occasionally miss one, it is your own fault.

    2. Re:United did disclose it... by Anonymous Coward · · Score: 0

      you schedule your connections

      That's true. The wife choose a 2 hour layover rather than the 45 minute one with United to be on the safe side. When we arrived at the final destination our bags weren't on the carousel. They'd gone on the 45 minute flight and were off in a holding area.

    3. Re:United did disclose it... by Obfuscant · · Score: 1

      United doesn't schedule your connections, you schedule your connections (or your travel agent / website does on your behalf).

      However, their website does offer flights with connections that are ridiculously short, usually as the cheapest or cheaper options. That may be a natural result of trying to help optimize YOUR travel time (shortest layovers are usually shortest trips overall), but I don't believe it is a conspiracy to try to get you to miss flights. Why would they do that? It costs them money. If they run out of standbys for the flight you missed, they have an empty seat. If they have to reimburse you, they lose money.

      But ultimately, it is the traveller's responsibility to scroll further down the page and pick an itinerary that has adequate layover time. Personally, an hour his my minimum, and I always go for three when it's an international connection.

  7. You can say you're ETHICAL and a hacker too... by Anonymous Coward · · Score: 0

    ... but at the end of the day you're still a poser and a luser with delusions of grandeur. Worse, you're not part of the solution, but a "certified" consultant prolonging the problem.

    Making big donations? About as philantropic as billy "ethical marketing" g.: At the end of the day it's blood money and you're essentially spending for indulgences, mostly indulging in your own self-love. "Lookit me being all generous and shit." Sure, if that's the best you know how to contribute to this world, indulge.

    1. Re: You can say you're ETHICAL and a hacker too... by Anonymous Coward · · Score: 0

      What?

    2. Re:You can say you're ETHICAL and a hacker too... by U2xhc2hkb3QgU3Vja3M · · Score: 1

      Why are ethical/white hat hackers not part of the solution? In what way are they prolonging problems?

      They're not the ones inventing problems or creating them, they're just finding them and telling companies about them.

      If someone points out that a bridge is going to collapse soon because he can clearly see fractured concrete and half-torn steel beams, will you call him a terrorist when the bridge falls down?

    3. Re: You can say you're ETHICAL and a hacker too... by Anonymous Coward · · Score: 0

      Yes. Don't muddy the water with facts.

      Ain't nobody got time fo dax.

    4. Re: You can say you're ETHICAL and a hacker too... by Anonymous Coward · · Score: 0

      Your spamfilter is working better than it should, order some Prozac

  8. Ronald McDonald? by Anonymous Coward · · Score: 0

    What does Ronald McDonald need airmiles for? Doesn't he fly on a sled pulled by reindeer?

    1. Re:Ronald McDonald? by sumdumass · · Score: 2

      No, it is his house not him himself.

      Actually, air miles are traded for lots of things other than travel. But that aside, the Ronald McDonald house likely could actually use the air miles for travel as it exists to help families be closer to children sent to hospitals far away for life saving medical treatments. This is so mom doesn't have to drive 4 hours a day to see little Sallie going through chemo treatment then drive another 4 hours back home only to get a few hours sleep and do it again or end up spending a months rent on 5 days hotel stays to avoid the multiple drives.

      I really hate McDonald's from their anti smoking campaigns to the anti gun bullshit but this house charity is probably the only thing that allows me to patronize their restaurants.

    2. Re:Ronald McDonald? by Anonymous Coward · · Score: 2, Insightful

      I really hate McDonald's from their anti smoking campaigns to the anti gun bullshit but this house charity is probably the only thing that allows me to patronize their restaurants.

      - Hates anti-smoking campaigns
      - Hates "anti-gun bullshit"
      - Patronizes McDonalds' "restaurants"

      This is the most subtly redneck trash comment I've ever seen on Slashdot. Well done!

    3. Re:Ronald McDonald? by Anonymous Coward · · Score: 0

      Fuck off cuck, and take your wifes son with you ;)

  9. Interesting valuation by Solandri · · Score: 1

    Most people who trade miles (risky, wouldn't recommend it, but it exists) value United miles at around 1.4 cents/mile. It used to be 2+ cents because United is a member of Star Alliance, arguably the best airline partner program out there. But the last few years they've added a lot of restrictions on how you can use miles from one partner airline on a different partner.

    Income and prizes (sweepstakes) have always been taxed, even if the prize is merchandise. So I don't see why this would be any different. It has the unfortunate side-effect where someone may win a half million dollar home, and because they're unable to afford the taxes on it they're forced to immediately sell it. At which point they're taxed again because the money from the sale is "new" income - gotta love the government. AFAIK, American Express is the only company which will also pay your taxes on prizes they award you. So if you win a $100,000 BMW from them in one of their prize contests, they will also give you enough cash to pay the tax on that. Plus more cash to pay the taxes on the cash they gave you to pay the taxes for the prize. Plus more cash to pay the taxes on the cash they gave you to pay taxes on the cash they gave you to pay the taxes for the prize. etc.

    Usually, just donating the prize to charity is the simplest way to avoid it becoming a tax windfall for the government. The charity gets the full value of the donation, and you get a tax deduction for that value (even though you never actually received the value of the prize - another flaw in our tax code).

    1. Re: Interesting valuation by Anonymous Coward · · Score: 0

      well explained!

    2. Re:Interesting valuation by jratcliffe · · Score: 1

      Usually, just donating the prize to charity is the simplest way to avoid it becoming a tax windfall for the government. The charity gets the full value of the donation, and you get a tax deduction for that value (even though you never actually received the value of the prize - another flaw in our tax code).

      You only get a deduction to offset the income you had from the receipt of the prize. You don't end up any better off than if you'd never won the prize in the first place.

  10. One million airline miles by Applehu+Akbar · · Score: 1

    That's enough for a business class upgrade!

    1. Re:One million airline miles by Fire_Wraith · · Score: 1

      Great! We'll put you on the upgrade request list. You're currently #523 on the wait list for upgrade for your flight.

    2. Re:One million airline miles by demonlapin · · Score: 1

      To be fair, hitting 1M miles is usually enough to automatically put you in the highest catgeory of elite status - for life. Not a bad thing for whatever your taxes would be on $20k.

  11. Fake Currency as taxable income? by wardrich86 · · Score: 2

    Sooo, I can pay my taxes in coupons, Air Miles, and other loyalty points? Awesome!

    1. Re:Fake Currency as taxable income? by MattskEE · · Score: 1

      If the IRS didn't tax high dollar gifts then savvy people would legally avoid taxes by structuring income as gifts. In lieu of $40k income or bonus, an employer gives employee a $40k car and reduces their taxable income by $40k. Instead of $200/mo going to groceries, here's a $200 grocery store gift card. Etc, etc.

      And this airline miles gift is effectively income in the same way a cash prize from a bug bounty program is income.

      Now it may well be inconvenient to receive high-dollar gifts that are also taxable so you have to pay money to accept the gift... but going the other way and not taxing gifts has worse problems.

  12. United Intelligence by Anonymous Coward · · Score: 0

    But they're smart enough not to attack/demand arrest of people who found and reported their vulnerability. I think I'm flying United next time I hop off the continent. :)

  13. certified ethical hackers? by Anonymous Coward · · Score: 0

    Hahahahaahahaha

    I'm a certified ethical coffee drinker.

    1. Re: certified ethical hackers? by Anonymous Coward · · Score: 0

      trying to be old school claiming being certified is lame? great contribution to the story, y0u s0 l337

  14. Re: You can say you're ETHICAL and a hacker too.. by Anonymous Coward · · Score: 0

    I could not agree more with the 'what?' part :) donating air miles to those in need is considered contributing to a problem? Let me guess, you are killing baby whales to solve it all..

  15. Welcome to consulting by Beeftopia · · Score: 1

    Every dollar you receive is taxed. And you have to pay estimated taxes every quarter. And then you gotta pay the self-employment tax.

    It makes me much more keenly aware of the difference between pre-tax dollars and post-tax dollars. When I have to pay say, 100 dollars for something, I know how much I have to make in order to net 100 dollars, after tax.

    There is at least one exception (of which I'm aware, I'm sure there are more): house flipping. The first 250K (500K if married) of profit is tax free (exclusions apply). And then it's taxed as a capital gain (at a 15% rate). Tax rules are a big source of politicians' power, and are thus heavily influenced by donations and lobbying.

    1. Re:Welcome to consulting by Anonymous Coward · · Score: 0

      The house flipping you are referring to is limited to once every 3 years, and only if you have lived (as far as the government is concerned) principally (more than 1/2 the year) at that location for at least 2 of the prior 5 years. Other house sales that dont meet this requirement are taxed as normal income.

    2. Re:Welcome to consulting by Fire_Wraith · · Score: 1

      This is correct. It's still capital gains (i.e. investment) income though, meaning that as long as you held the asset for more than a year, you pay the 15% rate, rather than the 39% rate.

  16. Ethical hacking is wrong. by jondeanmack · · Score: 0

    Hacking under the umbrella of "ethical" is still wrong and is punishable by death. Unfortunately not as fast a death as death by gun.

    1. Re:Ethical hacking is wrong. by xvan · · Score: 1

      ...the assumption that because some quality or combination of qualities invariably and necessarily accompanies the quality of goodness, or is invariably and necessarily accompanied by it, or both, this quality or combination of qualities is identical with goodness. If, for example, it is believed that whatever is pleasant is and must be good, or that whatever is good is and must be pleasant, or both, it is committing the naturalistic fallacy to infer from this that goodness and pleasantness are one and the same quality. The naturalistic fallacy is the assumption that because the words 'good' and, say, 'pleasant' necessarily describe the same objects, they must attribute the same quality to them.
      —Arthur N. Prior, Logic And The Basis Of Ethics

    2. Re:Ethical hacking is wrong. by guardian-ct · · Score: 1

      This brings new meaning to the phrase, "And by Prior Logic, ..."

  17. McPain con Queso by Anonymous Coward · · Score: 0

    is how I read that.