On 8/29/2024 6:17 PM, Mark at Lorimark wrote:
(not an accountant)
That sounds like 'barter' which should probably not be on the books?
Not an accountant or tax advisor
Neither am I but see topic "402 Bartering Income" on the IRS site.
This one of the situations best NOT writing about an instance about
because commonly "cheated on" if those engaged in barter are sure no
auditing trail left behind. But here part of the exchange was in money.
LOL, decades ago we were visiting in an "end of the road" community that
by government reckoning was extremely poor. Our hosts told us that poor,
but not nearly as poor as in the gov't statistics because most of the
local economic exchange was done by barter and off the books. While
there, the flutter valve in my Saab's fuel pump snapped. A local
mechanic towed us a good distance to his shop, where in exchange for a
shop manual for the car* (not expensive for me replace) and a small
amount of cash** he took apart the fuel pump and hand cut a replacement
flutter valve from a bit of aluminum sheet stock (after noting that the
flip lib of a soda can was the same thickness as the snapped flutter
valve) which worked well enough to get us hundreds of miles home. The
total cost to me was a small fraction of what the tow, diagnosis, and
repair would have cost me in the city. Our hosts felt we had been cheated!
Michael D Novack
* Not like comes with the car or a "Chiltens" but a full shop manual
which I carried as at the time Saabs uncommon in many areas. This
mechanic had shelves where he had shop manuals for as many as he could
get a hold of, and hadn't yet one for Saab. Like I said, a real out of
the way end of the road place.
** In defense, the people of this community could scarcely comply with
the IRS since the latter's evaluation of "fair market value" would not
be taking into account the LOCAL "fair value". In other words, when
goods/services were exchanged for money, that was a far smaller amount
than "outside". Remember our host's feeling we had been cheated.
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