How are you Coping with Covid?

[IBDaMann]

I just have the one.

Yes, yes, I understand that each individual personality of yours believes it is the only one. I get it. I still need to know which personality I am addressing. That requirement doesn't go away.

 

[Nordberg]

Instead of bringing Americans together, President Trump tried to divide us, using racist and xenophobic rhetoric that has contributed to an increase in hate crimes against Asian Americans and Pacific Islanders.

That is one reason why he is in trouble Tuesday. He has energized his haters and Trumpys, but has not expanded his voting base.

 

[Dutch Uncle]

That is one reason why he is in trouble Tuesday. He has energized his haters and Trumpys, but has not expanded his voting base.

Another view is that he's narrowed his voting base to haters and Trumpazoids. Obviously that is not a winning strategy.

That said, a vote for Trump or Biden isn't just a vote for a person, but also a party. Frankly, a Democrat President, a Democrat Senate and a Democrat House is going be bad for everyone.

 

[CFM]

It becomes easier to hide a service, but technically even a service must be reported. Any exchange of goods or services must be reported, and taxes must be paid on it.

Lets say one person babysits while the other cleans house. Who to say they are not just babysitting and cleaning house for free, so will probably get away with it. But if it is on a larger basis, lets say one company provides transportation, and the other provides medical diagnosis... That would trigger the IRS.

There is sometimes an effort by corporations to use barter to hide income. It is often caught.



That is where it gets UGLY!!! So you have to pay taxes on the "fair market value" of the goods or service that you are bartering. In a normal business transaction, the seller wants a higher price, and the buyer wants a lower price. In a barter transaction, because the price (in money) is never paid, both want the lower price to pay the lowest taxes. They will then claim a ridiculously low price... So far so good. Then the IRS will make a ruling that it is the "standard advertised price". The problem is that is often a starting point for a negotiation down to a real price.

So lets say someone advertises a house for sale for $300k. You would have been able to negotiate them down to $270k. Instead, you paint them a painting you could sell for somewhere between $200k and $300k. You would both like to set the price for everything at $100k, to save everyone tax money. The IRS will probably demand the price be $300k, even though there is no way anyone would have gotten $300k for that house.

We're not talking about corporations or big companies. Let's say Person A needs a garbage disposal replaced but isn't skilled in that area. Person B is and does that for Person A. In return, Person B needs an electrical outlet added but isn't skilled in that area. Person A is and adds the outlet for Person B. There isn't any "getting away" with anything. Both have the same value, therefore, nothing was made by either party. It's an even trade.

 

[Walt]

We're not talking about corporations or big companies. Let's say Person A needs a garbage disposal replaced but isn't skilled in that area. Person B is and does that for Person A. In return, Person B needs an electrical outlet added but isn't skilled in that area. Person A is and adds the outlet for Person B. There isn't any "getting away" with anything. Both have the same value, therefore, nothing was made by either party. It's an even trade.

There was a set of services that were exchanged. The IRS considers that to be taxable, as does the laws of the USA. Both parties got something installed, and are therefore better off.

You are almost certainly going to get away with it, but you are getting away with something. We (both of us) may not like the law, but that does not change that it is the law.

 

[SmarterthanYou]

I hate the idiocy of most people, so besides the MC I hang with, I stay at home with the wife and dogs and i'm not affected at all

 

[Dutch Uncle]

I hate the idiocy of most people, so besides the MC I hang with, I stay at home with the wife and dogs and i'm not affected at all

MC? Mental Cases?

 

[Dutch Uncle]

It becomes easier to hide a service, but technically even a service must be reported. Any exchange of goods or services must be reported, and taxes must be paid on it.

Lets say one person babysits while the other cleans house. Who to say they are not just babysitting and cleaning house for free, so will probably get away with it. But if it is on a larger basis, lets say one company provides transportation, and the other provides medical diagnosis... That would trigger the IRS.

There is sometimes an effort by corporations to use barter to hide income. It is often caught.

That is where it gets UGLY!!! So you have to pay taxes on the "fair market value" of the goods or service that you are bartering. In a normal business transaction, the seller wants a higher price, and the buyer wants a lower price. In a barter transaction, because the price (in money) is never paid, both want the lower price to pay the lowest taxes. They will then claim a ridiculously low price... So far so good. Then the IRS will make a ruling that it is the "standard advertised price". The problem is that is often a starting point for a negotiation down to a real price.

So lets say someone advertises a house for sale for $300k. You would have been able to negotiate them down to $270k. Instead, you paint them a painting you could sell for somewhere between $200k and $300k. You would both like to set the price for everything at $100k, to save everyone tax money. The IRS will probably demand the price be $300k, even though there is no way anyone would have gotten $300k for that house.

All good points easily solved by differentiating between bartering work, such as fixing the outlet versus trading goods and by limiting goods to an amount such as $1000 per transaction.

 

[CFM]

There was a set of services that were exchanged. The IRS considers that to be taxable, as does the laws of the USA. Both parties got something installed, and are therefore better off.

You are almost certainly going to get away with it, but you are getting away with something. We (both of us) may not like the law, but that does not change that it is the law.

No, it was two neighbors helping out each other. Not taxable.