Monday, July 07, 2008

Overheard on the radio

It seems bartering is making a comeback. Sites like craigslist are filling with people offering guitar lessons for furniture, computer repair for groceries, and other goods and services for trade.

Funny, we were just talking about this. I was saying how cool it was because if the deal is between "wholesalers" of that good or service (IE, not selling used goods, but a retailer, or provider of a service), both parties technically profit. Someone who sells electronics can trade a TV to someone who writes websites for site development. This way, both parties are trading at cost, instead of retail. Website creation costs $1000, but actually costs $300 to the coder. TV purchase costs $1000, but only costs $300 to the TV seller. Coder and TV seller spend $300 and get $1000. Not to mention both parties skipping $1000 in taxes.

But the bad news is...

Ah, they're probably going to talk about fraud, or misleading advertisements

... the IRS says some of those trades are taxable.

*composing myself* Ok, yeah, I'm sure they'll get right on that...

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