Billy Brown wrote:
> Michael S. Lorrey wrote:
> > Using barter is a great tax dodge, and so long as there is a
> > commodities market,
> > you will always have a good idea of what any item is worth
> > relative to any other
> > item. 10 widgets = 1.00 unit of currency = 5 wingnuts. Doing the
> > extra step on
> > your computer at little to no cost saves you 5-50% of the value in taxes.
>
> Last I heard this is illegal in the U.S. - barter transactions are legally
> equivalent to cash sales, and you're supposed to collect sales tax and
> report them based on the 'market value' of the goods. I suppose avoiding
> the use of money makes it easier to cover your tracks, but that's the only
> difference it makes.
There is no national sales tax, and there is no state sales tax in my state,
outside of meals & rooms, and professional services, so I don't need to declare
anything. Barter is not illegal. The IRS wishes it were, though. If no cash
changes hands, then how do they valuate the merchandise? Retail, wholesale,
distributor, or cost? How do I make out then? I do professional services in
exchange for goods, and I will exchange goods that I don't need and don't value
for goods that I would normally have to buy at retail. Since the value of my own
property to me is my cost, not the retail value, I gain 30-50% just on a
transaction on that basis. Many people will give me a good discount as well on
their goods for doing a barter transaction, on the order of 10-30%. Almost all
of my computer equipment has been purchased in this manner.
-- TANSTAAFL!!!Michael S. Lorrey Director, Grafton County Fish & Game Assoc. http://www.lorrey.com/gcfga/ Member, Extropy Institute http://www.extropy.org Member, National Rifle Association http://www.nra.org "Live Free or Die, Death is not the Worst of Evils." - General John Stark
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