Barter or sell? Which is better? - PeachParts Mercedes-Benz Forum

Kuan · #1 10-07-2011, 04:18 PM

Suppose I'm able to bill $50/hr for four hours. I'd like to trade that for 4 hours of something else. What do you think is better for 1) me 2) the economy?

Sell my services and then use the money to pay for four hours of services?

or

Straight barter?

elchivito · #2 10-07-2011, 04:24 PM

I barter sometimes. For me it's sometimes better. I don't have to declare income and usually when I do it it's something I'm not licensed for, veterinary stuff usually, nothing terribly illegal. I also barter animals or meat for other comestibles or supplies and services. I settled the last of my feed bill last year with beef.I seems to me that barter isn't a negative on the economy necessarily, it just isn't a positive. No money entering the stream.

Skippy · #3 10-07-2011, 07:42 PM

It depends on whether you're getting taxed on both transactions, or just one, or neither. If there's one that causes you a tax burden, but not the other, the non-taxed transaction is almost certainly going to be better for you. If there's no difference in the taxation between the two options, then it really doesn't matter.

mgburg · #4 10-07-2011, 09:29 PM

Bartering seems to be a "Gentlemens' Agreement" arrangement more than anything.

As long as you go into it with the full intention of YOU completing your side of the "agreement" and expecting, at worse, the other side having issues completing theirs.

Otherwise, people have a tendency to complete things a bit further when cash is involved.

Something about a "contract" and "promises to perform" and little things like that.

As for the "reporting" aspect? Barter/Cash has ALWAYS had issues with "full disclosure" to the appropriate authorities.

'Nuff said!

GL!

aklim · #5 10-07-2011, 11:50 PM

Who would you barter with? It is difficult when you might do the work and not know if I would just say "Piss on you" and not honor my agreement.

el presidente · #6 10-08-2011, 04:11 AM

Quote:

Originally Posted by Kuan

Suppose I'm able to bill $50/hr for four hours. I'd like to trade that for 4 hours of something else. What do you think is better for 1) me 2) the economy?

Sell my services and then use the money to pay for four hours of services?

or

Straight barter?

What's her name??

t walgamuth · #7 10-08-2011, 07:25 AM

I used to barter on occasions where if I did not barter I would not get the job. The three times I remember are twice with jewelers and once with my Indie mechanic. In all cases I invoiced for the work as normally and deducted off that with their regular invoicable prices.

All barter transactions legally are to be reported to the IRS as income. I did because my actions were not done to avoid taxes.

The way I did it was a net zero effect to the IRS in any case since both sides were getting equal parts income and expense.

I would think barter has no impact on the actual economy....it just won't impact the figures reported.

mgburg · #8 10-08-2011, 12:50 PM

Quote:

Originally Posted by aklim

Who would you barter with? It is difficult when you might do the work and not know if I would just say "Piss on you" and not honor my agreement.

I'm guessing here that bartering was the reason for the birthing of the phrase...

"Fool me once...shame on you. Fool me twice...shame on me."

SwampYankee · #9 10-08-2011, 02:53 PM

Bartering is better, takes the tax man right out of it. Not that I would condone such illegal behavior, of course.

aklim · #10 10-08-2011, 03:13 PM

Quote:

Originally Posted by mgburg

I'm guessing here that bartering was the reason for the birthing of the phrase...

"Fool me once...shame on you. Fool me twice...shame on me."

Bartering or anything else.

aklim · #11 10-08-2011, 03:13 PM

Quote:

Originally Posted by SwampYankee

Bartering is better, takes the tax man right out of it. Not that I would condone such illegal behavior, of course.

I'm lost. Help me out here. I thought it was only illegal AFTER you get convicted and not before?

The Clk Man · #12 10-08-2011, 06:35 PM

Quote:

Originally Posted by SwampYankee

Bartering is better, takes the tax man right out of it. Not that I would condone such illegal behavior, of course.

Hey Swampy, let's barter. I will trade you 1/2 of a bologna samich for some grass seed for my yard. What say you?

layback40 · #13 10-08-2011, 09:23 PM

Quote:

Originally Posted by SwampYankee

Bartering is better, takes the tax man right out of it. Not that I would condone such illegal behavior, of course.

X2

Same situation here in Australia. As soon as you dont have $$ change hands its 10% the government doesnt get.
Cash money is the same.
Not that I would be suggesting anyone do anything to evade tax!!

aklim · #14 10-08-2011, 11:12 PM

Quote:

Originally Posted by layback40

X2

Same situation here in Australia. As soon as you dont have $$ change hands its 10% the government doesnt get.
Cash money is the same.
Not that I would be suggesting anyone do anything to evade tax!!

Again, IF you can trust the other person and live with the lack of recourse, go for it. Business cards for a friend cost less thru a cash payment. After receipt of payment, nothing was forthcoming. No recourse. Before you do that, you best make sure of the person you are trading with.

layback40 · #15 10-09-2011, 02:37 AM

Quote:

Originally Posted by aklim

Again, IF you can trust the other person and live with the lack of recourse, go for it. Business cards for a friend cost less thru a cash payment. After receipt of payment, nothing was forthcoming. No recourse. Before you do that, you best make sure of the person you are trading with.

Only ever do that sort of transaction with a hand shake !!!