barter in this situation

[rae rae shorty]

Hi everyone...have a question that needs input..I want to barter with a lady who grooms dogs..she lleft a message on my answering machine.that its the same price as my hourly massage BUT keep in mind it takes 4 or more hours to groom the dog"..now, I wanted to do an even dollar for dollar trade..it cost the exam same per hour..what do you think? Does she get a longer massage? Or still and hour..thanks! t017

 

[8***L]

barter in this situation

Normally when I do exchanges I do them $ for $. This is the best way to do it instead of according to the amount of time it takes. Different people charge different rates for their services. You shouldn't undervalue what you do.

 

[Ann O]

barter in this situation

That's how I do it, too. $ for $. That way, no one feels cheated. Different people work for wildly different hourly rates, and to exchange based on time is to compare apples and oranges, IMHO. I've always done $ for $ and it has always worked very well. It's an even trade that way.

 

[funwithsharpthings]

barter in this situation

I could be wrong, but I thought barter has to be cash value as any bartering done during the year has to be claimed as income on your taxes.

http://www.irs.gov/businesses/small/article/0,,id=187920,00.html

 

[swift.taylor37]

barter in this situation

4 or more hours to groom the dog? Constant, undivided attention on the one dog? Is she counting the time the dog spends in the kennel with the hair dryer/blower on it while she bathes/brushes/styles other dogs?
Yeah, I say go with the dollar-for-dollar barter in this circumstance.

 

[Alexandra M]

barter in this situation

4 or more hours to groom the dog? Constant, undivided attention on the one dog? Is she counting the time the dog spends in the kennel with the hair dryer/blower on it while she bathes/brushes/styles other dogs?
Yeah, I say go with the dollar-for-dollar barter in this circumstance.

That's what I was thinking ... a groomer only grooms 2 dogs a day? I can't even imagine.

 

[Love is great]

barter in this situation

Thank you everyone..as always you are all so helpful..I thought that was a bit extreme too..four hours plus? oookay..you've answered my question..thanks a bunch! t006

 

[Binkster]

barter in this situation

Call around and ask how long it will take groomers to do your dog, then ask price, then metion why you are calling and you should get some more people interested in trade offs. And ccmarie, wow are you that pickey on declaring income?. I do trade offs with a graphic designer for all our marketing needs, i am getting some unistone path installed infront of the clinic, got a set of golf clubs and lessons from a local pro(who now refers to us), and just working off my snow tires.
Barter works great, mainly when you are slow and have some down time in the clinic.

 

[In search of Confidence]

barter in this situation

The tax thing is why I haven't ended up bartering. I can't wrap my mind around it and don't want to be caught doing it wrong. If I receive a value of $60, and in return provide a service valued at $60, isn't the balance zero? Why do they want to tax it.....or even know? Or do they not allow the liability to balance the income? Since we can't claim services given to charity as a deduction because it is "just time", then why aren't services received considered "just time"?

 

[happymom]

barter in this situation

The services you receive in payment for services provided are considered income, the same as if you paid each other in cash. Therefore you owe the standard sales taxes on the amount received as payment. Therefore it's much smarter to barter dollar for dollar AND get it in writing for accounting purposes.

 

[Sierra-chan]

barter in this situation

The services you receive in payment for services provided are considered income, the same as if you paid each other in cash. Therefore you owe the standard sales taxes on the amount received as payment. Therefore it's much smarter to barter dollar for dollar AND get it in writing for accounting purposes.

Seems to me that makes it pointless to barter. So I'll just keep paying for my massages.

 

[ChicoPedro]

barter in this situation

Depends.

If someone offers you $100 of goods/services in exchange for $70 of your goods/services, you are coming out ahead. You still need to pay the taxes on it, but you are clearly benefiting from the arrangement.

Even if you are swapping $ for $ services, the $70 massage you provide doesn't actually cost you $70 out-of-pocket the way paying for their services would. So you pay the taxes on the value of what you receive and still come out ahead.

I still don't like bartering because the accounting is messy and you really need to have everything spelled out in writing in case of any disagreements and/or audits.