Barter Economy

So apparently a lot of people have taken to bartering due to the recession. Some people I know think they'll end up under investigation from the IRS.

Is that within their jurisdiction?

Please list everyone who is doing this.

😆

I believe, technically, any transaction involving the exchange of goods is subject to tax laws.

I know (cash) gifts can be up to a certain value before they are taxed, I don't know if it is similar with items (you pay tax on the purchase of a car, not to give it as a gift? though giving that much money as a gift would require some government involvement, iirc).

The IRS basically sets what is in its own jurisdiction, so my assumption would be that should bartering start to impact the state's flow of capital, to turn a phrase, the mafia would demand its cut.

Originally posted by Shakyamunison
Please list everyone who is doing this.

That would obviously be impossible but there's an article somewhere (print media) about people who have started doing it.

Originally posted by Symmetric Chaos
That would obviously be impossible but there's an article somewhere (print media) about people who have started doing it.

It was a joke. Like I was working on a list for the government or something.

I hate having to enplane a joke. 🙁

Yeah, I just talked to a tax professional, because I was curious. (He works in another department here, with me.)

He said basically what inimalist said. Just the same as someone buying something at Wal-Mart, each party pays taxes on their respective "goods".

Except, instead of one receiving money and one receiving goods, they both receive goods. (Income taxes, state taxes, excise taxes, would all still apply.)

Yes, blowing the pool man in exchange for a pool service is illegal.

Pot dealers ftw.

Actually, considering it'll probably be legalized soon anyway and looking at the great depression and bootlegging and families like the Kennedys, growing and selling pot may historically be the best thing to do right now. I'm not encouraging law breaking, I'm just saying that based on the history of the late 20's and early 30's, that loser in the smelly hoody with the lame chin strap beard may have a mansion in 5 years and a son who grows up to be president.

Bartering is good especially for services like getting someone to fix your car and you decorate their kitchen for them for example, why is it good?

because it cuts the evil, parasitical, rip of bastard bankers out of the equation.