After meeting with a salesperson to discuss their product my wife and I received a vacation certificate through another company. While we originally planned to use the certificate and sent in the form with the requested processing fee, complications with the company and our desires arose that caused us to cancel our contract and receive a full refund of the processing fee. In their terms and conditions, they have some statements that depending upon how I read them give different avenues in moving forward. They include a suggested free market value of the offer is $275, and It is called an “offer to sell travel” and “has no cash value.”
My question is whether or not we owe taxes on the fair market value on the certificate since we have received it and started to use it before cancelling or if we owe no taxes as the long term effect is the same as if we never accepted the offer to begin with or never started to use it since unused it has no cash value. Or something else entirely.
