On Aug 8, 4:30*pm, jim "sjedgingN0Sp"@m@mwt,net wrote:
" wrote:

On Wed, 08 Aug 2012 08:56:41 -0500, jim wrote:

" wrote:

On Wed, 08 Aug 2012 06:40:38 -0500, jim wrote:

Stormin Mormon wrote:

The difference is that I can choose not to shop at Walmart. I can't choose
not to pay US and state taxes.

Sure you can.

Simply live frugally and barter for goods and
services and you can legitimately avoid taxes.

Wrong. You still owe taxes on barter.

So if you trade firewood for eggs, what is
the tax you would pay?

Easy. *The market value of the transaction. *You owe both sales tax on one
side of the transaction and income tax on the other.

The IRS regards the market value to be zero if it is
not a commercial enterprise.

And your reference for that would be?
It's my understanding that if I paint my neighbor's house
and he gives me a car valued at $2,000 in return, that
is taxable.


For instance if I mow my neighbors
lawn but don't mow lawns for a living that is not taxable.

I'd like to see where the IRS has that position. Are they
going to go looking for someone, have a practical
way to find someone who does this once? no. But
let's say you're doing this for the neighbor at a rate of
$50 a week. At the end of the season, he gives you
tools worth $1000. I'd like to see where the IRS says
you don't owe income tax on that $1,000. Everything
I've seen says you do, commerical enterprise or not.

From the IRS:

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. "


So if I give my neighbor firewood and my neighbor
gives me eggs and neither of us is selling firewood or
eggs then it is not subject to tax.- Hide quoted text -

- Show quoted text -

Cite?