Income Tax on a trade?

[Kwatt]

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.


.

 

[phucheneh]

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]

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]

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.

 

[edro]

I don't see why barters would be taxed as long as you aren't gaining capital.

Edit: And apparently, I am wrong.
http://www.forbes.com/2009/11/11/irs-tax-barter-exchange-income-personal-finance-wood.html

This article says any product or service received is taxable.

🙁 wtf merica

 

[phucheneh]

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.

 

[twinrider1]

So if I fix someone's car in return for a blowjob them fixing my house...

Well, that certainly puts your plumber thread in a whole new light. :biggrin:

 

[Red Squirrel]

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. 😛

 

[phucheneh]

I think that was called the middle ages or something.

 

[BoomerD]

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. 😛

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

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