Off Topic: Barter - How much do you use it?

Lancie1

Lifetime Supporting Member
Join Date
Jul 2003
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Alabama
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EDIT: Sorry, I meant to post this in the Casual Talk section. Will try to get it moved.

I have been living on a shoestring since 1992 and have to watch my spending and stay out of debt. One help is barter -swapping things you can do without for things that you need.

Last week my long-suffering wife told me that she could no longer cut my hair due to arthritis in her shoulder, and that I would have to go to a barber. For most of our long married life, we lived 30 miles from the nearest barber shop, so she cut my hair each week from the day we were married. Then we moved to town when I got unable to do physical work.

I started looking around for a barber shop and could not find one. Since the last time I had been in a barber shop, they now are called salons or stylists, with both women and men customers, and I was afraid to go in one of those- wouldn't know how to act!

I finally found what looked like a barber shop out on the edge of town. It looked run-down, and the barber pole was missing (later I found out somebody had stolen it). I went in and the place was dark as a tomb. I thought the barber was closing up, but he said no, his lights had just gone out and he didn't know how he would ever afford an electrican to fix them. I looked around and said maybe I could fix them if he would cut my hair. So we traded. I got a haircut, the best I had in the past 50 years! Then I went home and dug out my old electrician tool pouch and went back and traced down his problem. One of the wires in a switch box had slipped out of the wirenut. I put it back and got his lights on. He was happy, and said that he had some other electrical items, if I wanted to trade for more haircuts. I will probably go back next week for another free haircut and some more work.

How much do you use barter, and how do you handle reporting it on your tax returns?
 
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That is black "black economy" around here. A kind of tax evasion. But what the h**k, one can be too nit-picking. I would have done the same.

I dont barter much, but I buy and sell a lot on second-hand portals (similar to ebay).
It is essentially the same as bartering.
Last, my eldest son wanted a telescope for christmas. I could have bought a c**p one or a good second hand one. I ended up buying a very fine one from an elderly gentleman who was happy to part with it to someone who would get much more fun out of it than he would ever himself. I paid 20% of the price from new I think. The "wow" effect when my son saw it was priceless.

There is a treshold for when you must start reporting the transactions to the taxman. Not sure what that treshold is. Not going to investigate it either..
 
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As far as I have always understood, if no money changed hands, there is no taxes to report. This may be different if you sole business is in bartering, but I don't think some electrical work for haircuts counts. Very creative thinking.
 
As far as I have always understood, if no money changed hands, there is no taxes to report.
I am not sure what the official IRS laws are about bartering. I am trying to find some info at the IRS web site.

EDIT: I found some Internal Revenue Service information on Bartering in Publication 17, Chapter 12, Page 86. It says that if you exhange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted (by the IRS) as fair-market value, unless the value can be shown to be otherwise. Generally, you report this income on Schedule C of Form 1040.

So I guess I am okay if I fill out Schedule C in 2014 for this year's tax return.

Think I'd have fixed the lights first, then gotten the haircut.
The barber wanted to do it the other way - he was an old guy like me and thought I was particular about my hair. I asked him if my previous haircut looked like I was anywhere close to being picky! He only laughed and started cutting. He spent a lot of time and really cut it nice. I think he thought he was getting the best end of the deal, but fixing his lights took less time than the haircut.

It seems when two people are swapping services, one of them must trust the other and go first. Both services can not usually be done at the same time.
 
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EDIT: Sorry, I meant to post this in the Casual Talk section. Will try to get it moved.

I have been living on a shoestring since 1992 and have to watch my spending and stay out of debt. One help is barter -swapping things you can do without for things that you need.

Last week my long-suffering wife told me that she could no longer cut my hair due to arthritis in her shoulder, and that I would have to go to a barber. For most of our long married life, we lived 30 miles from the nearest barber shop, so she cut my hair each week from the day we were married. Then we moved to town when I got unable to do physical work.

I started looking around for a barber shop and could not find one. Since the last time I had been in a barber shop, they now are called salons or stylists, with both women and men customers, and I was afraid to go in one of those- wouldn't know how to act!

I finally found what looked like a barber shop out on the edge of town. It looked run-down, and the barber pole was missing (later I found out somebody had stolen it). I went in and the place was dark as a tomb. I thought the barber was closing up, but he said no, his lights had just gone out and he didn't know how he would ever afford an electrican to fix them. I looked around and said maybe I could fix them if he would cut my hair. So we traded. I got a haircut, the best I had in the past 50 years! Then I went home and dug out my old electrician tool pouch and went back and traced down his problem. One of the wires in a switch box had slipped out of the wirenut. I put it back and got his lights on. He was happy, and said that he had some other electrical items, if I wanted to trade for more haircuts. I will probably go back next week for another free haircut and some more work.

How much do you use barter, and how do you handle reporting it on your tax returns?

A hair cut every week?

I've gotten my hair cut once a month for years and no one would *ever* call me a long haired hippy-freak...
 
I've gotten my hair cut once a month for years and no one would *ever* call me a long haired hippy-freak...
Yes, that is about how often my wife cut it, but most barbers I have used don't like to cut so much off at one sitting (maybe feel they are being treated unfairly?), so probably I will have to go more often now, maybe every 2 weeks. Really I don't know because the frequency has not been a problem for me in a long time. Now I am in a new ball game, and my memories of barbers are 50 years old. I think I used to get one every week, but maybe things are different now.

EDIT: Looking at Tax Form 1040, Schedule C-EZ, there is no minimum amount, but I can use the one-page Schedule C version if total expenses are less than $2500. So right now my "Gross Receipts" are $10 for fixing the lights, and my "Total Expenses" are also $10 for the value of the haircut, for a Net Profit of $0 added to my Form 1040 Income. I have been doing my own tax return forms to save about $100 for the preparation fees, but maybe I could find a tax man that needs his lights fixed?
 
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🍺


(I'm actually one of those guys in their 50s with a thick head of hair and no grey - I wear my hair a little on the long side and get it cut about twice a year, cause I can.)
 
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Gillette-Fusion-Manual-Razor.jpg
plus-sign.png
reg_600.ab.bruce.082112.jpg
equal-sign.png
piggy-bank-cash.jpg


🍺


(I'm actually one of those guys in their 50s with a thick head of hair and no grey - I wear my hair a little on the long side and get it cut about twice a year, cause I can.)

In my 50s, full head of hair, Red but going gray fast. Get my hair cut once a month cause I need all the help I can get.

By the way, it's at a "Salon" but the lady who cuts it has been doing it for 20 years so she knows how I like it.
 
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LOL Great idea! I think this country needs more people that think like that.
Is there any other country where the taxpayers pay extra to find out how much tax they owe?

What this country needs is a tax system that does not force the taxpayers to also pay for figuring out how much tax they owe. The amount of tax owed should be simple, obvious, easy to figure, and done by the government that is getting the money. If they can't at least do that much, how are they possibly going to be able to spend the tax money wisely? So far, their record of wise spending is dismal and an embarassment.
 
We didn't need an income tax for a hundred years but then along came the military industrial complex...but I digress.

Since we are stuck with having a federal income tax, I think it should work like this:
Everyone pays 1% on their first $40k (make this adjustable so that it is about double the poverty level). After that first 40k, you pay i dunno how about 15%. And, make it so that the new tax period starts about Nov. 1 so that every one with a good income gets a 14% raise right before Christmas.

That's it. That way, everyone who earns pays something but not an unfair amount like zero or 36%...

I know the gov't wants more money than that, but we wouldn't need much of an IRS if the system were that simple, you shouldn't even need to file, and somehow, some way, the government needs to be convinced that debts and deficits do matter.

It's amazing how they have the masses convinced that reducing the size of government destroys jobs and hurts the economy.
 
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I traded a car for a car last year. The value of each was ~$6,000. No money changed hands, so a $0 gain. I asked my tax guy if there was anything to claim. He said no. Not as long as there was no actual money exchanging hands.
 
...we wouldn't need much of an IRS if the system were that simple...
In my mind, the fundamental problem with all of these simple tax solutions you hear about (i.e. FairTax) is that they wouldn't stay simple for very long. Seriously, how long do you think it would last before the politicians start sticking their grubby income-redistributing fingers in it? All of a sudden there's a special deduction for this group, a special credit for that group... before you know it, it's so complicated that we need a new government bureauocracy just to manage it. And we're back where we started. o_O
 
I barter all the time, I have a ton of people that want/need something I have or I am selling and I trade all the time, because I do this for a living I have to make a profit, I do not pay taxes on it when it changes hands because I do when I sell it (double taxation)

I lost my hair a few years back... well I do have more now on my back (pun intended :) ) I have a great pair of clippers and every other week I clip away fast and easy...

They now have a TV show about bartering and how they barter up! start with nothing but end up with what they want most of the time
 

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