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Bartering?


tooldini

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Guest Marywanna

LOL Lily is a good bulldog only 1 year old. I like jack russels but man are they wild usually super smart I hear. Lily isn't the smartest well I think she kinda just does things in her own time. If she is good enough quality and health we may have some pups someday. I was gonna get a rescue bulldog but since I had others dogs it seemed best to get a puppy since bulldogs can be dog aggressive.

She is one good looking bulldog! At the vet the other day(seems like all the time) I heard snorting and knew I was gonna see a Bully. His name was Winston Churchill,he was a Rescue. He looked good except the people had not taken very good care of him and he had a bad case of mange. Those Rescue folks laughed and said I was crazy being with Russell Rescue! Yep us dog lovers are nuts for sure. :rolleyes:

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Guest Marywanna

Marywanna,

Are you saying the income is not required to be reported for tax purposes?

Oh no,not at all. I wouldn't even know that. I meant on a personal level. Bartering doesn't usually involve money. At least not large amounts.

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I know this comes as a pain in the donkey as it did to me, but my CPA friend and patient says if I fail to report completed barters the same as cash income I can look elsewhere to get my taxes done.

 

 

id say find a new cpa! dont tell your cpa, wtf, it dont take a rocket scientist to think of that, every one that can does cheat on taxes, from the rich to the poor that work for cash! It is the american way!

 

Peace

FTW

Jim

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I know this comes as a pain in the donkey as it did to me, but my CPA friend and patient says if I fail to report completed barters the same as cash income I can look elsewhere to get my taxes done.

 

I'm confused. If I am trading $200 worth of MMJ for $200 worth of. . . lets say chickens where have I made an income? I've just traded for equal value. I guess one could make the argument that I am making more than the cost to grow MMJ but isn't the person I am bartering the chickens for also doing a value add? How could anyone possibly figure out the tax on that?

 

Ok from the IRS website:

 

A barter exchange or barter club is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis.

 

Which says to me if you are not a commercial business and have an informal agreement you are "not include." After all I am only trading my services for growing for the services of someone else to raise my chickens. If both parties are noncommercial I don't think you have to claim. If you have a LLC for your caregiver company then I guess you are screwed when it come to bartering.

 

But I am no CPA so maybe one can point out where I am wrong?

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Guest Marywanna

I have bartered cars for meds. At that time they weren't considered "meds". Worked out real well for both parties involved. We are related so he didn't have to pay any sales tax for the title change.

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I think most bartering wouldn't be applicable for declaring...

For instance, If I make a half dozen caps for your wife, and in return you come over to my house and cut down a tree in my backyard. That's just doing favors.

Even if it is more money tangible... If I do a tune up and oil change on your car, and you give me a little bag in return, and I don't turn around and sell it or anything like that.. It's still doing favors.

I suppose if you were trading bags for homemade goods, then selling those goods at your local farmers market, that might be starting to get questionable..

 

But when you make a trade on a handshake and honor... there really isn't much that's traceable unless you're handing over cash... And even then, if the cash amounts were very low, it could be counted as a tip... And you can get away with a few bucks in tips before you have to start reporting it.

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Bartering is great and it is harder to track to tax, but income is still income.

 

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.
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