Are purchases made by trading gold for product taxable?, page 1

Are purchases made by trading gold for product taxable?, page

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Topic started on 10-10-2009 @ 09:58 PM by Dbriefed

Just wondering, if we revert to gold, if we barter gold for items, is it taxable?

To stay out of debt, I don't finance the cars I buy. I pay cash, plus the 9.75% sales tax in my area. How stupid is that if gold can be legally traded for cars without tax?

reply posted on 10-10-2009 @ 10:43 PM by dooper

reply to post by Dbriefed

All gains are taxable. Your taxable portion is your basis (cost) subtracted from your selling price or value at disposal.

But then again, who's going to know, unless you really go overboard.

It's odd, but a twenty-dollar gold piece is technically only worth $20, but I assure you, it's worth a lot more - in a trade.

reply posted on 10-10-2009 @ 10:54 PM by Kaytagg

reply to post by dooper

Okay, so if I have 1 oz of gold, and I trade it to Dbriefed for 1050 pounds of apples, how does the government tax that?

reply posted on 10-10-2009 @ 11:04 PM by dooper

reply to post by Kaytagg

You eat all those apples, there is no gain.

You sell those apples for more than the value of what you traded, the difference is taxable.

OR you just keep your mouth shut. (Metaphorically speaking of course. You gotta be able to eat the apples.)

Trading is like selling crack.

As long as none of the cash goes through a bank, there's no way for anyone to account for it.

reply posted on 10-10-2009 @ 11:06 PM by Kaytagg

reply to post by dooper

Ahah -- as long as the CASH.... We're not using any cash. We're using gold, and apples, as bartering items. So how does the government tax that? Do that take 20% of my apples? Do they take 20% of his gold bar?

reply posted on 10-10-2009 @ 11:17 PM by dooper

reply to post by Kaytagg

Ah! Again, the only way to detect a gain or someone living well beyond claimed income, is for it to go through the bank.

Your employers say you make X.

Your bank account shows 3X going through it.

That raises eyebrows and flags.

So you just trade, and who's to know?

That's a lot of apples.

Or apple sauce.

reply posted on 10-10-2009 @ 11:20 PM by Kaytagg

Well, even if we declared the transaction to the IRS, how are they going to tax it?

Are they only able to tax united states dollars? What if we started doing transactions in another currency? Or in gallons of alcohol, or something like that.

reply posted on 10-10-2009 @ 11:35 PM by Magnivea

Ok, here's one. Say some guy has some apples and I want them. I don't want to pay, I'd like to barter. So I Chuck Norris him in the face and take his apples.

Do the Feds take 20% of my awesome facepunch from him? Do I get sued?

reply posted on 10-10-2009 @ 11:41 PM by dooper

reply to post by Magnivea

Chuck Norris doesn't pay taxes.

Taxes pay him.

reply posted on 11-10-2009 @ 12:03 AM by wx4caster

coincidentally, i too had some apples, and lo the IRS wanted to take my apples from me for they were a gain!

even more coincidenttally, i mailed a picture of chuck norris crouched and ready to attack into the IRS, and have not heard a peep since.

taxes are on gains as posted, it doesnt matter the form of those gains. cash, assets, worth, etc;

in order to be LEGAL yes you must declare ALL sales (as i understand it) and the value of the gain is figured via assesment if in trade.

reply posted on 11-10-2009 @ 02:16 AM by Dbriefed

After some searching of the IRS site and a few others, barter exchanges may result in income (profit) for one party or both, and both parties must file form 1099-B to show market value of the items exchanged.

Trading items of equal value have no tax liability in itself. It's any increase in value at the point the items are traded that the IRS wants a cut of.

Although the exchange may include items of equal value (car is worth $10K, 10oz gold is worth $10K), the dealer may have bought the car for $4K, and the gov wants their share of the $6K profit.

If it's apples, that bag of seed cost you $1. Now you have $1,050 worth of apples and you trade it, the IRS wants their 30-40% since you realized the income by trading it for an oz of Gold. If I paid cash for that Gold, and the value went up 2x, the gov wants their taste of the increased value.

Interesting, if dollars were based on Gold, inflation would not generate as much tax. Deflating the dollar must generate a huge amount of tax.

[edit on 11-10-2009 by Dbriefed]

reply posted on 11-10-2009 @ 02:54 AM by groingrinder