Top 400 Taxpayers Paid Almost As Much in 2009 as the Entire Bottom 50%

[Redshield]

I asked you first.

Substantiate your claim about barter being non-taxable.

Perhaps if you weren't so combative towards me in your posts I would have respected that. Rest assured that plenty of nations do not tax bartering. Feel free to research it yourself with your favorite search engine.

I happen to use several government issued currencies and I willingly render unto Caesar. If I wanted to make an exchange with my neighbor, I would not be expected to report it, nor would I.

You and I may not live by the same rules.

 

[guerilla]

Perhaps if you weren't so combative towards me in your posts I would have respected that.

What's combative about pointing out the obvious flaws in your arguments?

Let's give you one more chance.

Show us one country where barter is not taxable. And Somalia doesn't count because they don't have a state tax system.

 

[cardine]

Cherry picking? lol... that data comes straight from the Tax Foundation, which pulls data straight from the IRS.

U.S. Federal Individual Income Tax Rates History, 1913-2011 (Nominal and Inflation-Adjusted Brackets) | Tax Foundation


Edit: And here you go, cowboy. Straight from the IRS:

SOI Tax Stats - Historical Table 23

You are cherry picking years.

 

[subigo]

You are cherry picking years.

Are you on crack? How is it cherry picking when *every* single year since the start of income tax is listed?

 

[Kiopa_Matt]

Substantiate your claim about barter being non-taxable.

I get taxed on employment INCOME. If I give someone a car, and they give me 6 goats in return, I don't send two goats off to the government, as it's not income. Once I convert those goats into currency, then it becomes income, and I'm taxed on it.

 

[ly2 from WF]

I get taxed on employment INCOME. If I give someone a car, and they give me 6 goats in return, I don't send two goats off to the government, as it's not income. Once I convert those goats into currency, then it becomes income, and I'm taxed on it.

Wouldn't you have to put a dollar value on those goats and then pay tax on the value?

 

[guerilla]

I get taxed on employment INCOME. If I give someone a car, and they give me 6 goats in return, I don't send two goats off to the government, as it's not income. Once I convert those goats into currency, then it becomes income, and I'm taxed on it.

In what country?

 

[Rexibit]

I get taxed on employment INCOME. If I give someone a car, and they give me 6 goats in return, I don't send two goats off to the government, as it's not income. Once I convert those goats into currency, then it becomes income, and I'm taxed on it.

You totally should send the goats in to the government. Label the box "Backed Taxes" and line it heavily with hay so they have less chance of moving around. When the box is opened, goat fest at the IRS!

 

[OhHenry]

Here's a video (won't embed)

Do You Barter?


You can also claim a loss on your barter exchange. So say, in the current fair market value, the 6 goats value at $1000.- but the car values at $5000.- you can claim a $4K loss.

Bartering Tax Center

 

[Ishi777]

We do not require to pay tax on barter in Israel. We refer to it as combination deal and they are exempt from taxation by ITA. People achieve this often and no tax is required. Not sure how other states enforce such a thing. Seems to be not possible.

 

[Kiopa_Matt]

Wouldn't you have to put a dollar value on those goats and then pay tax on the value?

Not that I'm aware of. The government waits for those goats to turn into income, whether that's me selling goat milk, butchering them and selling meat, or just selling the whole live bahhing goat. Then it becomes income, and I'm taxed on it.

And actually, I'd have to talk to an accountant, but I'm not even sure I'd be taxed on that. I've already paid tax on the money I've used to purchase my car, which I used to barter for my goats. Then again, since we're talking livestock, yeah, I'd probably be taxed on it.

Or if you trade someone a bunch of 2x4s for a fish tank, on your year-end tax return do you write down revenue of 1 fish tank, and loss of a bunch of 2x4s? Of course not, right? If you're supposed to, that's the first I've ever heard of it. If you build someone a table, and they bake you a bunch of cookies for payment, do you write down "a bunch of cookies" as revenue on your tax return?

In what country?

All of them. I don't think there's a single country out there that's going to tax me on cookies I got from the old lady across the street, because I mowed her lawn.

 

[charlesmartel]

From the Infernal Revenue website:

Tax Topics - Topic 420 Bartering Income

The IRS would tax breathing if they could. Oh, wait. That's Obamacare!

 

[Ishi777]

In USA it is required to report barter to their IRS by reporting cash value but it is not enforced. In Israel there is no such requirement to report barter to our ITA. The governments of USA and Euro are very restrictive on such things to maintain currency power, but that is not the case in all nations. But if you live in USA or Euro nation there is no way for them to enforce such request so if you do report it then you are not very smart.