jimbrown 0 #1 April 11, 2011 Follow me here, I'm thinking that if I make an even trade with an individual, let's say I trade a '73 River Queen houseboat for a '88 Harley Heritage Softail, and the value of each is $6999, no "income " was produced therefore there is no income tax liability incurred. Would you agree or disagree? Peace, Jim B/ Quote Share this post Link to post Share on other sites
david3 0 #2 April 11, 2011 http://www.youtube.com/watch?v=K8E_zMLCRNg&feature=related Quote Share this post Link to post Share on other sites
jimbrown 0 #3 April 11, 2011 Quote http://www.youtube.com/watch?v=K8E_zMLCRNg&feature=related I'm not sure if that is an answer to the question but thanks for participating in the discussion and we have some nice consolation prizes for you out back! Peace, Jim B. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #4 April 11, 2011 Why would there be any income produced? Assuming you bought the houseboat with after tax dollars and you didn't have a capital gain, so it doesn't matter whether you buy the Harley or a jet ski. Quote Share this post Link to post Share on other sites
jimbrown 0 #5 April 11, 2011 QuoteWhy would there be any income produced? Assuming you bought the houseboat with after tax dollars and you didn't have a capital gain, so it doesn't matter whether you buy the Harley or a jet ski. So then.., you agree that an even trade doesn't produce taxable income. What about an even trade where I trade my time for it's value($40.00 per hour)? I haven't gained anything , i've simply made an even trade. My time for someone elses money. Has that even exchange produced taxable income? Peace, Jim B. Quote Share this post Link to post Share on other sites
muff528 3 #6 April 11, 2011 Quote Quote Why would there be any income produced? Assuming you bought the houseboat with after tax dollars and you didn't have a capital gain, so it doesn't matter whether you buy the Harley or a jet ski. So then.., you agree that an even trade doesn't produce taxable income. What about an even trade where I trade my time for it's value($40.00 per hour)? I haven't gained anything , i've simply made an even trade. My time for someone elses money. Has that even exchange produced taxable income? Peace, Jim B. DJ! ...Is that you!?! Quote Share this post Link to post Share on other sites
jimbrown 0 #7 April 11, 2011 DJ! ...Is that you!?! ? Peace, Jim B. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #8 April 11, 2011 Quote Quote Quote Why would there be any income produced? Assuming you bought the houseboat with after tax dollars and you didn't have a capital gain, so it doesn't matter whether you buy the Harley or a jet ski. So then.., you agree that an even trade doesn't produce taxable income. What about an even trade where I trade my time for it's value($40.00 per hour)? I haven't gained anything , i've simply made an even trade. My time for someone elses money. Has that even exchange produced taxable income? Peace, Jim B. DJ! ...Is that you!?! Of course it's HIM. Quote Share this post Link to post Share on other sites
jimbrown 0 #9 April 11, 2011 [replyDJ! ...Is that you!?! Of course it's HIM. Hymn, Hymn, .. Fuck Him!!! Peace, Jim B. Quote Share this post Link to post Share on other sites
oldwomanc6 52 #10 April 11, 2011 Quote " Follow me here, I'm thinking that if I make an even trade with an individual, let's say I trade a '73 River Queen houseboat for a '88 Harley Heritage Softail, and the value of each is $6999, no "income " was produced therefore there is no income tax liability incurred." Quite the appropriate question for this weekNo income was earned. As far as I know, The IRS doesn't concern itself with barter. I'm not sure that the state would even care about sales tax (?) although some states are horrid about that kind of stuff. lisa lisa WSCR 594 FB 1023 CBDB 9 Quote Share this post Link to post Share on other sites
Gravitymaster 0 #11 April 11, 2011 I'm not a CPA but this should answer your question. http://www.irs.gov/taxtopics/tc420.html Quote Share this post Link to post Share on other sites
jimbrown 0 #12 April 11, 2011 Quote I'm not a CPA but this should answer your question. http://www.irs.gov/taxtopics/tc420.html It doesn'i really. Did you think that answered the question? Did you see the plane at the Pentagon in the four frames the government released? I don't know who you are , Gravitymaster, but I think it's a sure bet you are not Jesse Ventura!Peace, Jim B. Quote Share this post Link to post Share on other sites
nanook 1 #13 April 11, 2011 I don't think this would apply as that particular area is an exchange for a service in a business environment. Schedule C is a small business affair. I believe he is referring to a private trade of property._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
Gravitymaster 0 #14 April 11, 2011 QuoteI don't think this would apply as that particular area is an exchange for a service in a business environment. Schedule C is a small business affair. I believe he is referring to a private trade of property. I already answered his original question. That link should answer the seecond one. Of course that assumes he wants an answer and not an arguement. Quote Share this post Link to post Share on other sites
jimbrown 0 #15 April 11, 2011 QuoteI already answered his original question. That link should answer the seecond one. Of course that assumes he wants an answer and not an arguement. Yeh, you posted a link. Oh , Thank You!!!!! Thing is your link shows us nothing but tells us everything about where your bread is buttered. When the tar is heated and the chickens are plucked I have a feeling you might be ,Gravitymaster, sportin' some feathers. Peace, Jim B. . Quote Share this post Link to post Share on other sites
nanook 1 #16 April 11, 2011 Oh. I understand now._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
Gravitymaster 0 #17 April 11, 2011 Just sign it Mickey Mouse or something like that. Odds are they will never even notice and if they do, you can deny you signed it. Gives you plausible deniability. It's your "Get Out of Jail Free" card. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #18 April 11, 2011 Quote Quote I already answered his original question. That link should answer the seecond one. Of course that assumes he wants an answer and not an arguement. Yeh, you posted a link. Oh , Thank You!!!!! Thing is your link shows us nothing but tells us everything about where your bread is buttered. When the tar is heated and the chickens are plucked I have a feeling you might be ,Gravitymaster, sportin' some feathers. Peace, Jim B. . You're the one asking tax questions on a skydiving site on Sunday night after midnight four days before the filing deadline. Quote Share this post Link to post Share on other sites
ryoder 1,590 #19 April 11, 2011 Quote You're the one asking tax questions on a skydiving site on Sunday night after midnight four days before the filing deadline. "There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
jimbrown 0 #20 April 11, 2011 Quote Quote Quote I already answered his original question. That link should answer the seecond one. Of course that assumes he wants an answer and not an arguement. Yeh, you posted a link. Oh , Thank You!!!!! Thing is your link shows us nothing but tells us everything about where your bread is buttered. When the tar is heated and the chickens are plucked I have a feeling you might be ,Gravitymaster, sportin' some feathers. Peace, Jim B. . You're the one asking tax questions on a skydiving site on Sunday night after midnight four days before the filing deadline. LOL ,there is no filing deadline really. A return can be filed at anytime. Peace, Jim B. Quote Share this post Link to post Share on other sites
nanook 1 #21 April 11, 2011 QuoteLOL ,there is no filing deadline really. A return can be filed at anytime. Actually, this year, it's the 18th of april. If you choose not to file, the IRS will file for you. If you fail to pay, or refuse to, then they will start garnishing your wages and such._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
jimbrown 0 #22 April 11, 2011 QuoteQuoteLOL ,there is no filing deadline really. A return can be filed at anytime. Actually, this year, it's the 18th of april. If you choose not to file, the IRS will file for you. If you fail to pay, or refuse to, then they will start garnishing your wages and such. Actually ,Nanook, I thinkthey expect you to file whithin 3 years of the date you mentioned. After that you can still file returns. Peace, Jim B. Quote Share this post Link to post Share on other sites
DrewEckhardt 0 #23 April 11, 2011 QuoteQuoteWhy would there be any income produced? Assuming you bought the houseboat with after tax dollars and you didn't have a capital gain, so it doesn't matter whether you buy the Harley or a jet ski. So then.., you agree that an even trade doesn't produce taxable income. What about an even trade where I trade my time for it's value($40.00 per hour)? The goods you receive are considered barter income. Quote 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. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business. If you failed to report this income, correct your return by filing a Form 1040X. Refer to Topic 308 for Amended Return information. See http://www.irs.gov/taxtopics/tc420.html Quote I haven't gained anything , i've simply made an even trade. My time for someone elses money. The IRS considers that a job even when you're not paid in US currency. Quote Has that even exchange produced taxable income? Yes, and I doubt the IRS will accept 28% (or whatever) + 12.4% + 2.9% of a Jet-Ski as payment (as a self-employed person you need to pay both halves of FICA + Medicare). Quote Share this post Link to post Share on other sites
nanook 1 #24 April 11, 2011 QuoteActually ,Nanook, I thinkthey expect you to file whithin 3 years of the date you mentioned. After that you can still file returns. That's three years to claim what is due to you before it expires and you can't claim it anymore. Within those three years, they tend to notice if you didn't pay taxes. if you owe, they aren't waiting three years. things get dicey if you are self-employed or own a business._____________________________ "The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln Quote Share this post Link to post Share on other sites
jimbrown 0 #25 April 11, 2011 QuoteThe goods you receive are considered barter income. Well Drew , we're just trying to determine whether time for fair wages are income or a break even kinda thing. We don't need to know all about "barter" and please never tell us on one of these threads what "the IRS says". I could give a flying leap. They don't make the laws and they have no internal authority to enforce any law. So again ,please don't tell us "the IRS says". Peace, Jim B. Quote Share this post Link to post Share on other sites
