I have a question regarding how taxes will be handled for points cards I redeem after the transition away from MS points.
According to the faq, when I redeem a points card, Microsoft will convert it to cash and retire the points.
As for taxes though, it says:
"We will not apply taxes when you purchase content using currency that we add to your account at the time of the transition. However, when you use currency that you add to your account after the transition (including from Xbox Gift Cards), all appropriate taxes will be applied to those purchases. "
So my question is: If I redeem a points card after the transition, and then purchase something, does this mean I get taxed on subsequent purchases (ie. is that MS adding to my account, or me?)
I don't generally like having lots of points in my account (in case it gets hacked), however I have several points cards I've been sitting on and am trying to decide if I should enter them in now or later.