Which led me to the conclusion that you might wind up paying more in TAXES on your bartered sex than you would have paid for the sex had you actually paid.
If you bartered $300 worth of plumbing for sex, in a 27% tax bracket you’d wind up paying $81 for the pink, which may or may not be more than you’d have paid for something picked up off the intersection of East Main and Shady Ave.
Hmmm. If it’s gonna’ be that kinda’ party, I’d rather get the $300 in green stuff.
Ther used to be (maybe still are) people who tried to barter nearly everything they bought or sold. They had ‘barter clubs’ where the exchanged deals, plus tips about merchants, dentists, etc. who were willing to deal that way. Nowdays there are probably internet sites to arrange this.
The IRS eventually took an interest, and began checking out the returns of people in these barter clubs. Some of them were caught not reporting this in-kind income, and got the usual prosecutions from the IRS in court for tax evasion.
So if you do enough of enough of this, it may indeed come to the attention of the IRS. And note that they do have some pretty good computer models that tell them how much people of various economic classes typically spend, and will pop up your return for investigation if you spending is way lower than typical.
As a close family relative of two individuals who served a long time at the IRS, I hereby confirm this.
Carry on.
How the heck does the IRS know what anyone spends? It’s income.
True, but this is why the income tax is unfair to begin with.
I give my services to the company and in return they pay me for those services. Then I have to pay taxes on that exchange. The company comes out ahead in the deal, since they get my services tax free (I realise, in essence, they pay me more since they know that a certain portion will come out as taxes).
So, if I barter for services do both parties have to pay taxes?
I do $400 worth of work for the plumber and then he turns around and does $400 worth of work for me. We both pay taxes as if we both recieved $400 cash? The hell sense does that make? There’s no net gain or loss.
Another question.
I have never traded in a used car on a new(er) car. When you do the trade in and get, say, $6,000 for your car and then put that down on the new car, do you pay taxes on the balance or the total cost of the new car?
Trade in = $6,000
New car = $20,000
Do I pay taxes on the 14 large or the 20 large?
What if I traded in the Hummer and got $20,000 for the trade in;
Hummer = $20,000
New car = $20,000
Taxes??
You see where I’m going with this?
In your first car example, you would pay taxes on the $20,000.
You’re acquiring an asset worth $20,000. You’re paying for it with $16,000 in cash (probably a check…) and $4,000 in merchandise, but you’re nonetheless paying $20,000 for an asset.
Same thing goes for your second car example.
When I do $100 worth of productive labor for pay, Uncle Sam wants 15% of it based on my tax bracket.
If I do $400 worth of productive labor for pay, Uncle Sam wants 15% of my $400. Thus, Uncle Sam is entitled to $60 for my labor.
If I am not compensated for my $400 worth of labor, I am not taxed. There is the issue of whether or not the recipient of my free labor should be paying a gift tax, but that’s not at issue here.
If I AM compensated for my labor, I am taxed.
So let’s look at it… if I paid YOU to function as an Uncommon Sense Provider (USP) for $400 worth of service, you’d be paying income tax on that $400. If you were in my tax bracket, that would be $60.
If I turned around and paid your plumber associate $400 for plumbing services, he would also owe the feds $60.
In essence, you are taxed for having worked for compensation. The fact that you received in-kind payment has nothing to do with whether or not you profited from your labors.
So what you’re saying is that this guy gives you head and then you perform a sexual act in return… (fnarf!)
Well it seems to work for this guy.
(the sex for tech support deal at least. No word on whether he’s up for solicitation though. 
)
That’s effed up since I already paid the full sales tax on the car I’m trading in in the first place. So basically, I’m not getting any (tax) credit for the $6,000 trade in on which I’ve already paid taxes on. I’m just shifting already (tax paid) credit to a different vehicle.
Boy, they got us coming and going!
[Beavis]Heh, heh, heh…he said “spends”[/Beavis]
[Butthead] A-huh, huh, huh…“come”…huh, a-huh, huh [/Butthead]