my blog - The Barter Project

I'm not trying to sell you guys my blog, I just wanted to share my most recent project. And instead of copy and pasting it here, I'll just give you all a link.

I started with an iPhone 3G 16GB that I bought for $125, and yesterday I put it on craigslist. The point of the project is to start with an item and see how far I can get doing nothing but trading. No cash involved, just trades.

Anyway, I half expected this to fall on it's face, but I've already sealed teh deal on trading a 84 VF500 in great shape for it, so I figured it's time to share the project.

I think this is going to be fun.

http://barterproject.wordpress.com/

You should've started with a red paper clip.

http://www.cbc.ca/canada/story/2006/07/07/paperclip-house.html

haha that's awesome! I remember reading about that a while back, and it was part of my inspiration. I remember someone going from an old cell phone to a porsche (boxter maybe?)

I have no immediate goals, except to aim to trade up in value each time, and see how far I can go.

My ultimate goal would be to trade up to some decent land.

I should box up all the Datsun 240Z parts and see how big of a trade I can get.....you got me thinking..........

pete240z wrote: I should box up all the Datsun 240Z parts and see how big of a trade I can get.....you got me thinking..........

Hell yeah! you might as well. Just the iphone > bike trade is worth it. Now if I can trade up from the bike we're in serious business.

I'm sure there are a bunch of guys out there who would trade something really interesting for the 240z parts.

In reply to Taiden:

Hang onto the bike till next spring, and I bet you could trade up!

Joey

You, of course, realize that all your trades are taxable, right? So you better be putting the tire of that bike aside to mail to the feds.

Hess has a point.

While I can't stand the tax man, think it is ridiculous, and find myself ready to burst when they try taxing barters, it is the law.

You may want to be cautious about what you put in a blog.

I'm not trying to be a wet blanket. I agree that it looks like fun, and hope you get the enjoyment out of it that you want. I will enjoy following your escapades. Just don't want you to loose the fun if the tax man comes down on your head.

SVreX wrote: Hess has a point. While I can't stand the tax man, think it is ridiculous, and find myself ready to burst when they try taxing barters, it is the law. You may want to be cautious about what you put in a blog. I'm not trying to be a wet blanket. I agree that it looks like fun, and hope you get the enjoyment out of it that you want. I will enjoy following your escapades. Just don't want you to loose the fun if the tax man comes down on your head.

Yeah, I was thinking about it this morning. What if the IRS catches wind of my little trading game and decides they want to make an example of me? Crap.

Hey, wait a minute...

Anybody good with the tax law on this?

I'm wondering if the value (according to the IRS) of the bike (which is essentially undefined) is EQUAL to the Iphone when traded even. Aren't the value of the 2 products determined by the owners (assuming they are not under duress)? If so, then the value of the bike= value of the Iphone, therefore no taxable gain.

Thoughts?

Barter them some taxes

SVreX wrote: Hey, wait a minute... Anybody good with the tax law on this? I'm wondering if the value (according to the IRS) of the bike (which is essentially undefined) is EQUAL to the Iphone when traded even. Aren't the value of the 2 products determined by the owners (assuming they are not under duress)? If so, then the value of the bike= value of the Iphone, therefore no taxable gain. Thoughts?

I am not any kind of legal expert and know nothing of tax laws, but I assume this would is wrong on this thought: You are making no gain on any transaction because the value of the cash you are trading is equal to the value of whatever you are buying.

I think you just said the same thing I did...

SVreX wrote: I think you just said the same thing I did...

Looks like I did

But my point was that they tax you when making no gain trading cash for a product, so why not when trading product for a product? I figure it would be the same.

Right, so this is where I am fuzzy. An accountant came into my Entrepreneurship class, and when I asked him how barter is taxed, he said it's taxed on the value of the transaction. When I asked him how value is determined on a vehicle, he said "book price".

If I sold someone an iPhone for $200, I would get taxed on $200. If I then buy a bike from them for $200, they get taxed on $200.

So I think that is why barter is taxable... because to the IRS you are buying and selling for a certain 'amount' that virtually trades hands twice... Am I making any sense?? Now im confused... haha

Taiden wrote: Am I making any sense?

You're talking about the tax laws, of course you aren't making any sense.

mtn wrote:

Taiden wrote: Am I making any sense?

You're talking about the tax laws, of course you aren't making any sense.

Fair enough.

In all honesty, I don't see why barter is taxed. I feel like the barter system could be a very strong backbone of our "economy" if it was taken more seriously. Most of my gains have been due to the barter system, and it is an effective way to recycle goods that might otherwise be thrown away. If they didn't tax it, it would stand to reason that more people would be willing to barter, and we would have less waste on our hands.

You know what they say... one's mans trash... it's another man's trash they just don't know it yet.

This guy got a Boxster starting with an old junky phone. Your goal should be Ferrari stating with an iPhone.

http://convozine.com/conversations/6493-trading-an-old-cell-phone-for-a-porsche-boxster-the-world-of-craigslist-s-barter-tab

SupraWes wrote: This guy got a Boxster starting with an old junky phone. Your goal should be Ferrari stating with an iPhone. http://convozine.com/conversations/6493-trading-an-old-cell-phone-for-a-porsche-boxster-the-world-of-craigslist-s-barter-tab

That would be nice... but for some reason ending up with a work truck and a lot of nice tools would be a better for me :)