Bartering food?

[Bossroo]

Don't forget that IRS conciders the value of your food items that one barters is considered a sale, which counts as your income and is taxable.

 

[CritterZone]

We love bartering. We grow a lot of produce to sell at Farmers Market, and we have a fruit orchard and grow berries and grapes. We also raise meat sheep and eggs. We have bartered fresh produce at a couple local restaurants for meals. A general contractor helped us frame and plumb our new house for a lamb. A neighbor traded us eggs for home made bread. We also donate a lot of stuff to the local nursing home, and every year we give away pumpkins to anyone who will take them and take a truckload to the grade school for the kindergarten class.

 

[Back to Nature]

I don't intend to tell the IRS about it. I might sell some as a taxable business, but most likely I'll sell most of it to locals, friends, and families under the table. I grew the stuff; they shouldn't be butting in.

 

[Bossroo]

Since many running for office or already in government will promise to give anyone anything that they want, then let YOU pay for it. No need to tell the IRS that one is bartering. They do Butt in and they will. Govertment hires a whole bunch of people that are assigned to sniff out operations such as bartering ( it may take a while, but they will find it )and part you with your hardearned money plus penalties.

 

[Back to Nature]

Since many running for office or already in government will promise to give anyone anything that they want, then let YOU pay for it. No need to tell the IRS that one is bartering. They do Butt in and they will. Govertment hires a whole bunch of people that are assigned to sniff out operations such as bartering ( it may take a while, but they will find it )and part you with your hardearned money plus penalties.

You could be in the IRS for all I know. If I barter with friends and family only, technically it could be a gift. I gifted them some produce, and they felt very grateful and gifted me with some eggs.

 

[elevan]

I've traded my eggs for handmade soap before. And jellies and guinea fowl for chiropractic care. Love to barter. It makes you think outside the box.

 

[Back to Nature]

I've traded my eggs for handmade soap before. And jellies and guinea fowl for chiropractic care. Love to barter. It makes you think outside the box.

I think bartering would be a fun way to make friends too. Like, if one person has space for a garden but no animals, and another person dedicated all their space to pasture, then they could trade meat for produce and call it good.

 

[TeamChaos]

I've had a wonderful time bartering! It's easier to me to ask someone what they have to offer that they feel is equal value to what I've got to trade- we've gotten all sorts of great stuff that I would have never thought to ask for! I have a hard time setting a dollar amount on things any way- if someone doesn't have stuff to trade, I ask what they think is fair value for what they'd like... in my experience, people are quite generous in their estimates.

 

[Bossroo]

A word to the wise ... Did anyone here that barters receive and/ or issue a IRS 1099 form for the bartered items ? If not, that practice is illegal. IRS has computers that track one's houshold/ farm / business income and living expenses ratios for their similar operation and picks up any anomalies (such as bartering) which is then red flagged and is subject to auditing. One can and will be audited for quite a few consecutive years, so keep good records. For those that think that they can continue , there is an IRS branch called Revenue agents. They pack heat and can and will seize anything of value to cover back taxes, interest, and penalties.

 

[Bossroo]

Here are some of the IRS codes regarding bartering IRS- Pub, IRS Publication 17:Your Federal Income Tax [ 2011] Bartering : Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. IRS-PUB, IRS Publication 225: Farmer's Tax Guide [2011] Barter income. If you are paid for work in farm products, other property , or services, you must report as income the fair maret value of what you receive. Link Rev. Rul. 80-52 1980-1 CB100. The value of services exchanged by a memer of a barter club is includible in each member's gross income for the taxable year in which received. Also, these exchanges are reportable by the barter club persuant to Link section 6045 if the Code and the applicable regulations. If two individual are members of a barter club and each agrees to exchange services, the value of the services received by each must be included in gross income. Barter club must report exchanges on Form 1099- B in accordance with the rules under Link Code Sec 6045, [Link FED 35,920, Link FED 35,939.022, Link FILES BUS : 9,260, Link PTE # 3,085 . Trade or credit units used by a barter club to account for transactions are also included in gross income when credited to the taxpayer's acount [ Link FED 5508.028, Link FED 5508.15, Link INDIV : 6,378, Link PTE # 3,085 .