Author Topic: Barter Tax!  (Read 4058 times)

Offline ogreboy

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Barter Tax!
« on: January 21, 2010, 06:34:43 PM »
I did a quick search for barter tax, and http://www.irs.gov/taxtopics/tc420.html.

Quote
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services received in exchange for goods or services you provide must be included in income in the year received.

Ahhhhhhhhhhhhhh!  What!  How is this possible.  How are you even gaining anything in a barter exchange, isn't the whole idea that it would be equal.  If i give you a 5 and you give me 5 1s the government wants me to claim that as income.

So please tax lawyers tell me I'm wrong.

Offline donaldj

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Re: Barter Tax!
« Reply #1 on: January 21, 2010, 06:38:53 PM »
So please tax lawyers tell me I'm wrong.

The lawyers cannot tell you you're wrong. They would be giving you knowledge based on their professional skills, and thus they would have to report it as tax.

There are a lot of things that are on the books that are virtually unenforceable. If you buy something out of state, you're supposed to pay the state Sales Tax at the end of the year. Do you? 

As far as I'm concerned, if there isn't a record of it somewhere, and I know I can get out of paying it, I sure as hell won't pay it. With my luck, my actual tax dollars are paying Rep Sheila Jackson-Lee's salary.

Offline Truik

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Re: Barter Tax!
« Reply #2 on: January 21, 2010, 06:49:19 PM »
So please tax lawyers tell me I'm wrong.

I'm not a lawyer, but...

When I barter with someone, I don't pay tax.

I suppose we are going to start being charged tax at garage sales, too.

(I know garage sales aren't bartering, per se, but its an equally un-enforceable and un-appealing concept.)


Offline Who...me?

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Re: Barter Tax!
« Reply #3 on: January 21, 2010, 07:20:52 PM »
They will have as much success taxing any barter exchanges I am involved in as taxing the methane gas that leaks from my ass.  ;D

Offline Truik

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Re: Barter Tax!
« Reply #4 on: January 21, 2010, 07:25:29 PM »
They will have as much success taxing any barter exchanges I am involved in as taxing the methane gas that leaks from my ass.  ;D

May neither of these prospective procedures ever see fruition.

Thank you.

 :D


Offline chris

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Re: Barter Tax!
« Reply #5 on: January 21, 2010, 07:37:46 PM »
How are you even gaining anything in a barter exchange, isn't the whole idea that it would be equal. 

The dentist gains plumbing work, and you gain dental work. Both of you gain, and both of you owe taxes. Ain't America grand?  ;D

Offline Truik

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Re: Barter Tax!
« Reply #6 on: January 21, 2010, 07:45:29 PM »
The dentist gains plumbing work, and you gain dental work. Both of you gain, and both of you owe taxes. Ain't America grand?  ;D

And how, exactly do they determine the "fair market value" when they come to collect this tax from both of you?

Oh, and don't forget, they need people to go around enforcing this insanity, so...I suppose this is their idea of creating jobs!

 >:(

That's one job I wouldn't want.


Offline ogreboy

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Re: Barter Tax!
« Reply #7 on: January 21, 2010, 08:31:22 PM »
The lawyers cannot tell you you're wrong. They would be giving you knowledge based on their professional skills, and thus they would have to report it as tax.

LOL!  Touche.

I understand that no one would ever actually pay tax on a barter, but the law is still ridiculous.  Somebody needs to fire the people in charge of these kinds of laws.

Offline inthego

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Re: Barter Tax!
« Reply #8 on: January 21, 2010, 11:08:50 PM »
Income tax is unconstitutional period!  The 13th amendment did not give Congress any new taxation powers.  Also the was not ratified by a majority of the states.  The IRS is Pure Tyranny...   :censored:  only just say that to them at tax time or to a judge... Been tried and most not all go to jail... 

the most notable lately is Wesley Snipes.
http://www.nytimes.com/2008/04/25/business/25snipes.html

Offline bartsdad

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Re: Barter Tax!
« Reply #9 on: January 22, 2010, 01:29:28 AM »
I'm not a lawyer, but...

When I barter with someone, I don't pay tax.

I suppose we are going to start being charged tax at garage sales, too.

(I know garage sales aren't bartering, per se, but its an equally un-enforceable and un-appealing concept.)



Garage sales and personal sales
Sales of personal belongings are exempt from sales tax if the seller is not in the business of making retail sales, and if no business assets are sold. For example, if an individual sells personal belongings at a garage sale, through word of mouth, notices on a bulletin board, or an advertisement in the classified section of a newspa-per, etc., no sales tax applies.
If a person regularly holds garage sales or sells items on a regular basis, and the items for sale were purchased with intentions of reselling, the person is considered to be in business, and sales tax must be charged on all sales of taxable items.

From the Communist State of MN

Offline Truik

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Re: Barter Tax!
« Reply #10 on: January 22, 2010, 02:49:49 AM »
I understand...I guess what I'm trying to say is, they may as well change that, too, for all the trouble they are going through to try and collect tax on bartering. I mean...do they really think they are losing some huge tax revenue base by going after people who barter?

When you pay income tax AND sales tax, you are already being taxed twice. How can they tax someone a percentage when there is ZERO MONEY EXCHANGED at all?

Sorry. Rhetorical question. I understand there is no real answer.

</moaning></whining>


Offline chris

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Re: Barter Tax!
« Reply #11 on: January 22, 2010, 07:17:50 AM »
I mean...do they really think they are losing some huge tax revenue base by going after people who barter?

if it was legal to barter without taxes, the percenage of the economy in barter would expand exponentially. The loss of revenue would be noticeable in a short time.

Offline ogreboy

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Re: Barter Tax!
« Reply #12 on: January 22, 2010, 09:50:10 PM »
if it was legal to barter without taxes, the percenage of the economy in barter would expand exponentially. The loss of revenue would be noticeable in a short time.
That's exactly why I was looking into the legalities of it.

Offline chris

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Re: Barter Tax!
« Reply #13 on: January 22, 2010, 09:53:03 PM »
That's exactly why I was looking into the legalities of it.

That is exactly why it's illegal.