Income Tax on a trade?

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Kwatt

Golden Member
Jan 3, 2000
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I have a coin worth $X. Someone has several coins and in total those coins are also worth $X (within a dollar or 2).

Is Income Tax due upon trade?

Or if and when I sell the traded coins?

I don't want to take the 28% collectibles hit.


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phucheneh

Diamond Member
Jun 30, 2012
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Correct answer is 'who cares' unless some idiot reports it.

I don't see how they could charge you tax unless the coins are graded and it can be clearly proven by 'book' values that you profited. Even then...meh.

Paper trail is the enemy. Prove that I'm not a sucker who dipped into my already-taxed income and paid twice what I should have. Or prove when I bought it, period. That would be my stance on collectibles if someone tried to pursue me.

If an item goes down in value, does the IRS pay you?
 

Jumpem

Lifer
Sep 21, 2000
10,757
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I just looked up this collectibles tax.

The IRS wants you to pay capital gains taxes on something that was purchased with money that had already had income tax applied. Ugh.
 

Red Squirrel

No Lifer
May 24, 2003
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I would just ensure the trade happens in a place that's out of drone range and also not in front of people that could potentially report you.

The US has weird laws when it comes to taxes.
 

phucheneh

Diamond Member
Jun 30, 2012
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So if I fix someone's car in return for a blowjob them fixing my house, what percentage of my house do I owe the IRS?

Or one of us just takes some money that we've already been taxed on, gives it to the other, who gets taxed and then gives it back, where taxes are paid a third time?

America Fuck Yeah.
 

Red Squirrel

No Lifer
May 24, 2003
68,456
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Would be cool to start a system where rather than paying companies for stuff, everybody uses their own expertises to provide services/items and people give their product/services in return. Ex: I need a pipe fixed and don't know how to do it, but I have a garden, so I get a plumber and give him a bunch of food in return. That system could only go so far though and would only catch on if everybody was willing to participate. Lot of stuff like computers it would be kinda hard to go with this system too. Can't imagine having a guy sitting in his garage soldering motherboards and processors by hand for food. :p
 

BoomerD

No Lifer
Feb 26, 2006
64,206
12,522
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Would be cool to start a system where rather than paying companies for stuff, everybody uses their own expertises to provide services/items and people give their product/services in return. Ex: I need a pipe fixed and don't know how to do it, but I have a garden, so I get a plumber and give him a bunch of food in return. That system could only go so far though and would only catch on if everybody was willing to participate. Lot of stuff like computers it would be kinda hard to go with this system too. Can't imagine having a guy sitting in his garage soldering motherboards and processors by hand for food. :p

The IRS wants their piece of that as well...

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Bartering-Tax-Center
 
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