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Old 10-11-2009, 05:56 AM
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rickoff rickoff is offline
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Join Date: May 2008
Location: Maine, USA
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Quote:
Originally Posted by Matthew Jones View Post
This is the information that should lead one to removing themselves completely from under the influence of any bank.

Barder based trade instead of cash payments. Barder is not taxed, in America anyway.
Unfortunately, Matt, that's really a popular misconception. In the instance where a simple exchange takes place, such as a person swapping a pint of milk for a pound of sugar, there isn't a problem. Thing is, we have many needs for goods and services, and there are ways to barter for them, but the IRS has that all figured out. Let's say that I work out a deal with my neighbor to tune his piano, and in exchange he will give me a good working chainsaw. In this case we are bartering a trade of services for goods. By IRS rules, each of us is required to report the fair value of the service or goods as income. Another problem is that it would be difficult for us, on our own, to work out enough barter deals to take care of all our family's needs. The solution to that is a barter exchange service, which is a business that gathers information about all of its client's wants and needs, and what they have to offer in return. The business then earns a commission for putting the right people together to conclude barter deals. It's a great way to accomplish barters for just about any goods or services you can think of. But alas, the IRS has this angle all figured out too. The barter exchange business is required to file reports with the IRS of all exchanges, and the parties to those exchanges. They are also required to furnish the same information to their clients on 1099 forms. Here's what the IRS says about bartering:

Tax Responsibilities of Bartering Participants

If you engage in barter transactions you may have tax responsibilities. You may be subject to liabilities for income tax, self-employment tax, employment tax, or excise tax. Your barter activities may result in ordinary business income, capital gains or capital losses, or you may have a nondeductible personal loss. Barter dollars or trade dollars are identical to real dollars for tax reporting. If you conduct any direct barter - barter for another’s products or services - you will have to report the fair market value of the products or services you received on your tax return.
Reporting Bartering Proceeds

If you barter your products or services through a barter exchange, you should receive a Form 1099-B, “Proceeds from Broker and Barter Exchange Transactions.” The amount shown in 1099-B Box 3 “Bartering” is your barter transactions proceeds and is generally reportable as income and must be included on your tax return. Barter exchanges have an annual obligation to report your bartering proceeds to the IRS.
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Really bites, doesn't it?


Rick
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