- quote -

That is going to depend on how organized it is. If it is
through a "barter exchange," then it belongs on a 1099-B.
However, if it is simply two taxpayers who came together
without a middleman, then a 1099-MISC may be used. To me,
this sounds like an organized group that constitutes an
exchange.

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guitarzoid[at]aol.com (Guitarzoid) writes:

- quote -

Think of it as you do plumbing work for the grocer, who pays
you, and you buy groceries from the grocer, for which you
pay. You both pay tax on your incomes. What's unfair?

Phil Marti
Topeka, KS

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D. Stussy wrote:
- quote -

IF it were, but do you not agree that the gross amount
belongs on the 1099-misc?

Cheer$,
Harlan Lunsford, EA n LA

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- quote -

Your recollection is faulty. I even seem to remember that
the IRS uses an example of a lawyer and painter (not
plumber, but that's not relevant) as an example OF a
[taxable] barter.

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- quote -

I don't have a problem paying taxes on bartered income but
the only issue I have is my wife teaches and gets a fee but
then the person also teaches my child and gets the same fee.
The money goes through a school so that they can take their
cut for using the school but we both get taxed.

As a plumber it's seems the same to me as if I did some work
for a buddy then he did the same for me and we both get
taxed for it. It don't seem fair.

dave

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Guitarzoid wrote:

- quote -

It may be bartering, but the amount in question is still
income to y'all.

Cheer$,
harlan Lunsford, EA n LA

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Guitarzoid wrote:

- quote -

First, the organization has sent your wife a 1099 for
services rendered, but she received checks for services
rendered less services consumed.

Second, let's look at this and see if I can explain it
in a coherent manner.

Let's say:
20 students per class and 5 classes per day.
parents pay teachers $50 per month per student
which means $5,000 to be distributed to teachers.

Let's presume 5 teachers each earning $1,000.00 / month.
# of own
Teacher Children * 50 Earned Received
------- -------- ------ ------- --------
A 1 $ 50 $ 1,000 $ 950
B 2 100 1,000 900
C 3 150 1,000 850
D 4 200 1,000 800
E 5 250 1,000 750
------- --------
$ 5,000 $ 4,250
======= ========

Two explanations:
1) Someone is dragging the pot for $750 OR
2) You did not pay into the pot.

Dick

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Guitarzoid wrote:

- quote -

If it were of the nature of barter, then reporting the GROSS
amount is correct (but it should be on a form 1099-B, not
1099-MISC).

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PS: I would contend that actually the 1099 is properly
reported, it should include the entire sum, even if your own
kids tuition was deducted from the checks paid out .

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- quote -

I would think that it is entirely correct and there is no
barter of professional services in this context.

If you take my kids this week and I take your kids next week
and there is NO money exhange then its probably barter.

But if the lawyer and the plumber swap professional services
my recollectionis that its not barter in the IRC context.

I'm actually suprised that that the group gets it right--so
many just happen to get it off the books. Whoever is doing
the books needs to be congratulated not questioned.

PS: Depending upon the nature of the Friday sessions, there
may also be a very decent case that the teaching individuals
are NOT independent contractors but are employees.

But in any event, its taxable/reportable income.

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"Guitarzoid" <guitarzoid[at]aol.com> wrote:

- quote -

Bartering is an income generator.

--
Regards,
Mark Rigotti

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"Guitarzoid" <guitarzoid[at]aol.com> wrote:

- quote -

Bartering activities are taxable income, also.

Wayne Brasch, CPA, M. S. Taxation

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guitarzoid[at]aol.com (Guitarzoid) writes:

- quote -

Even if this were barter, which it isn't, what makes you
think income from barter isn't taxable?

Your wife's gross fees for teaching are gross receipts for
her Schedule C. The reduction in her paychecks for tuition
payments for your children are just the same as a deduction
for insurance or taxes. They don't reduce her income.

Phil Marti
Topeka, KS

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Our family homeschools our children. On Fridays a group of
about a 100 families meet at a facility and have classes
during the day with some parents doing the teaching in areas
that they have expertise. The "teachers" charge 10.00 per
month for each student that is in their classroom. My wife
got a 1099 for teaching in 2003 that was for more than the
amount she recieved. The checks she recieved deducted the
amount that went to to the other teachers that taught our
kids. It seems to me that this is more of a barter than
income. Is this correct?

dave

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