Adirondacker Posted October 4, 2009 Share Posted October 4, 2009 In the fall of the year, the hint of cold weather causes a rush of getting projects started and finished before snow and lack of day light drives most inside. I'm no different and have not had time to form up the pad for my shop add on. I want this done before its to cold to pour concrete and have been pondering how to get this done and all the sawing for others trying to get their projects done. I sold a log trailer to a young guy up the road who needed it to haul some logs to me for sawing, he didn't have any money and would like to work it off if that was alright with me. Since I wasn't using the trailer and was looking to sell it anyways and he needed a boost, I agreed. I figured to have about sixty hours of his time that I can call on when I need an extra hand. He is self-employed so his time is relexable, so he will pour the concrete for me and I can keep sawing and working on my other projects. I also have a drying shed underway, and I had a guy come in looking for timbers to build a sugar house, mite appoach him to finish the drying shed in exchange for the needed timbers for his sugar house. Just love this barter business, with the ecomoney still slow there is more time than money so it becomes a win-win all away around. Maybe before Chistmas a blacksmith shop will be ready to move into? Gary (Adirondacker) Quote Link to comment Share on other sites More sharing options...
ironstein Posted October 5, 2009 Share Posted October 5, 2009 wow, that sounds pretty labor intensive! Glad to see youre helping others. People like you helping others get through the hard times are what make this country great. Quote Link to comment Share on other sites More sharing options...
Nakedanvil - Grant Sarver Posted October 5, 2009 Share Posted October 5, 2009 The IRS never cracks down on it until it gets too organized, but (believe it or not) you are supposed to pay tax on those transactions. Quote Link to comment Share on other sites More sharing options...
wedwards Posted October 5, 2009 Share Posted October 5, 2009 Unless there is a profit on the deal the tax issue is probably not significant, but good records are always a good idea. Also, be sure to have a firm understanding up front about what each party can expect from the other. Without that, if you do the bartering very often, sooner or later there will be a problem. Shoot, sooner or later there will be a problem anyway. It's just easier to sort it out if there is an upfront agreement. Don't ask me how I know this. Bill Quote Link to comment Share on other sites More sharing options...
thingmaker3 Posted October 5, 2009 Share Posted October 5, 2009 Maybe send the IRS a bag of concrete chunks and a spare tire as their share? Quote Link to comment Share on other sites More sharing options...
wedwards Posted October 5, 2009 Share Posted October 5, 2009 A guy tried something like that a few years back with a hammer like one that according to the GAO cost the guvmint $1000. He sent it in in place of taxes owed. The IRS was not amused. Hammers, concrete chucks, steel drops and such are apparently not considered even legal tender let alone a medium of exchange by Uncle Sam. Bill Quote Link to comment Share on other sites More sharing options...
Nakedanvil - Grant Sarver Posted October 5, 2009 Share Posted October 5, 2009 (edited) Doesn't have to be "Profit" just "income". If you trade $1,000.00 worth of firewood for $1,000.00 worth of labor, its considered $1,000.00 income for you and $1,000.00 income for the other guy too. Just like if you sold the wood for cash. And the other guy is being paid for his labor, so that's income for him. So, just don't go around bragging about it too much. When I had a renter who couldn't pay his rent, I let him work it off and I had to give him a 1099 and I had to claim the value of the "rent" as income. Just as if he had paid his rent in cash and I hired him to do work. In Washington we have "use tax" to go along with our sales tax (most states with sales tax have the same). What does that mean? O.K. Say I need shelves in my shop. I build them myself. The state wants sales (use) tax on that. Not the materials, the value of the shelves! Really! Their theory goes like this: If I go out and buy shelves, they get sales tax on them. If I build them myself they still want their tax! Otherwise they feel I am "cheating" them out of taxes. Believe me I found this out 15 years ago and ended up owing the state around $35,000.00! You see I had forging dies in my business that were carried "on the books" at nearly $500,000.00. At the time I had my own tool and die shop to make all my dies. See, the state says if I didn't have a die shop I would have gone to "ABC Tool & Die" to have them made and would have paid sales tax on all my dies. Making them myself did not relieve me of that burden. Edited October 6, 2009 by nakedanvil Quote Link to comment Share on other sites More sharing options...
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