Bartering

[americanwoman]

I'd seen it on tv and heard about it from friends but didn't quite believe it that people could really trade up until it happened to me.

My daughter was given a Nintendo ds but no games so instead of going to buy some someone suggested I try bartering for games. So I put up an ancient cell phone I had and just like that someone offered me an Xbox 360 with loads of games and extras. Took that and put it up and now I am an owner of a really nice pop up camper. Wow I just can't believe it, I went from an old flip phone to a pop up camper in 2 days, I am amazed and hooked now!


Anyone else like to barter and what's your success story?

 

[Gipper]

I'd seen it on tv and heard about it from friends but didn't quite believe it that people could really trade up until it happened to me.

My daughter was given a Nintendo ds but no games so instead of going to buy some someone suggested I try bartering for games. So I put up an ancient cell phone I had and just like that someone offered me an Xbox 360 with loads of games and extras. Took that and put it up and now I am an owner of a really nice pop up camper. Wow I just can't believe it, I went from an old flip phone to a pop up camper in 2 days, I am amazed and hooked now!


Anyone else like to barter and what's your success story?

I remember hearing someone turn a paper clip into a home in a couple years through bartering.

 

[Helix]

where is this done? is there a site or something?

 

[americanwoman]

where is this done? is there a site or something?

I did it on craigslist.

 

[Gipper]

I did it on craigslist.

This is so close to being a sig quote for me.

 

[americanwoman]

I remember hearing someone turn a paper clip into a home in a couple years through bartering.

I remember that too. I'd like to look it up and see what exactly was traded for what in that one.

 

[americanwoman]

This is so close to being a sig quote for me.

Haha and too add on that, there is nothing you can't get or do on craigslist

 

[Lutherf]

I did it on craigslist.

I'd be really hesitant to post any such stories. The IRS considers what you did to be a taxable event and you now have a short term capital gain on the value of the camper less the value of the phone.

Congratulations!!

 

[Gipper]

Haha and too add on that, there is nothing you can't get or do on craigslist

Preaching to the choir. Fortunately my reign of terror continues since I successfully pinned my exploits on Markoff.

 

[americanwoman]

I'd be really hesitant to post any such stories. The IRS considers what you did to be a taxable event and you now have a short term capital gain on the value of the camper less the value of the phone.

Congratulations!!

Oh boo on the IRS Besides if someone values something they have as the same price as your item, does that still count?

 

[Gipper]

It's taxable income if you report it. Just saying.

 

[specklebang]

It's taxable income if you report it. Just saying.

It's a Federal crime if you don't. Just saying.

 

[Captain Adverse]

This is what the IRS says: Tax Topics - Topic 420 Bartering Income

Topic 420 - Bartering 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. You must include in gross income in the year of receipt the fair market value of goods and services received in exchange for goods or services you provide or may provide under the bartering arrangement.

Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business or Form 1040, Schedule C-EZ (PDF), Net Profit from Business. If you failed to report this income, correct your return by filing a Form 1040X (PDF). Refer to Topic 308 for amended return information.

A barter exchange or barter club is any organization with members or clients or persons who 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.

The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B (PDF), Proceeds From Broker and Barter Exchange Transactions for all transactions unless they meet certain exceptions. Refer to Bartering in Publication 525, Taxable and Nontaxable Income, and the Form 1099-B Instructions for additional information on this subject. Persons who do not contract a barter exchange but who trade services are not required to file Form 1099-B. However, they may be required to file Form 1099-MISC (PDF). If you are in a business or trade, you may be able to deduct certain costs you incurred to perform the work that was bartered. If you exchanged property or services through a barter exchange, you should receive a Form 1099*B. The IRS also will receive the same information.

Please refer to our Bartering Tax Center page for more information on bartering income and bartering exchanges.

If you receive income from bartering, you may be required to make estimated tax payments. Refer to Publication 525, Taxable and Nontaxable Income, for additional information.

I say: SCREW THE IRS; THEY CAN BILL ME!!! :2mad: LOL

:labor_day

 

[Lutherf]

Oh boo on the IRS Besides if someone values something they have as the same price as your item, does that still count?

Under audit they would first try to find the "seller's" basis (how much they paid for it) but since that would probably be unavailable they tend to use Fair Market Value for their calculations. For example, if you paid $100 for the phone and the camper is worth $1100 you would be deemed to have a $1k gain. Now, as far as how often this happens......very rarely unless someone snitches you out and you had a substantial gain.

 

[Gipper]

Under audit they would first try to find the "seller's" basis (how much they paid for it) but since that would probably be unavailable they tend to use Fair Market Value for their calculations. For example, if you paid $100 for the phone and the camper is worth $1100 you would be deemed to have a $1k gain. Now, as far as how often this happens......very rarely unless someone snitches you out and you had a substantial gain.

I think of it like the 14 year old boy who has sex with his hot teacher - if you happen to get this lucky, SHUT THE HELL UP. Blabbing is the first and only way to get in trouble.

It'd be like someone running around blabbing about how they over-inflate their charitable write-offs or show a loss from a Schedule C business that doesn't exist.

 

[americanwoman]

I think of it like the 14 year old boy who has sex with his hot teacher - if you happen to get this lucky, SHUT THE HELL UP. Blabbing is the first and only way to get in trouble.

It'd be like someone running around blabbing about how they over-inflate their charitable write-offs or show a loss from a Schedule C business that doesn't exist.

Hey I didn't know! Can't we all just look the other way... :notlook:

 

[Gipper]

Hey I didn't know! Can't we all just look the other way... :notlook:

It's the internet.

I'm just saying that if you happen to turn a paper clip into a home one day, don't shoot your mouth off to anyone that doesn't like you or can't keep a secret.

 

[Lutherf]

Hey I didn't know! Can't we all just look the other way... :notlook:

Sure....what's it worth to ya.

 

[americanwoman]

Sure....what's it worth to ya.

A round on me in the tavern.

 

[lizzie]

This is what the IRS says: Tax Topics - Topic 420 Bartering Income

They just have to get their freaking hands in every little thing, don't they? Arghhhhh.

 

[Captain Adverse]

They just have to get their freaking hands in every little thing, don't they? Arghhhhh.

Well...did you see my response at the bottom of the post?

 

[americanwoman]

They just have to get their freaking hands in every little thing, don't they? Arghhhhh.

That's what I'm saying! If two people have something they consider to be of equal trade, why do they have to get involved?

 

[lizzie]

That's what I'm saying! If two people have something they consider to be of equal trade, why do they have to get involved?

Makes sense to me! :mrgreen: But the answer is because they want the money, plain and simple.

 

[Lutherf]

That's what I'm saying! If two people have something they consider to be of equal trade, why do they have to get involved?

On a serious note, never forget that every April 15th when you file a tax return you are, in effect, testifying against yourself. The presumption of innocence when it comes to taxes is dubious at best.

 

[sawyerloggingon]

I barter quite a bit. I don't want chickens so I made a deal with a local that sells eggs, firewood for eggs. I have bartered lumber for welding on my tractor and once talked my dentist into trading dental work for 10x10 beams he needed for a barn he was having renovated. It's a great system I think.