Re:Ask HN: Is it legal to barter or volunteer help in Wester...
by jasode on Monday November 08, 2021 @10:25AM
(#29150185)
> it is illegal to voluntarily help someone who is not family or to barter services
Not sure why the previous thread commenter used the word "illegal".
It's legal to barter and help non-family members. It's simply about declaring income for tax purposes. The USA has similar laws about declaring "fair market value" of bartering. (Although people often ignore the law.)
So if the word "illegal" must be used: It's illegal to not declare fair-market-value of bartering as income to be taxed.
Tax authorities target bartering because they don't want it to be used as a loophole to evade taxes. But, if you help your neighbor move a sofa, nobody is going to report the neighbor as a tax evader for not counting your help as "income".
Not sure why the previous thread commenter used the word "illegal".
It's legal to barter and help non-family members. It's simply about declaring income for tax purposes. The USA has similar laws about declaring "fair market value" of bartering. (Although people often ignore the law.)
So if the word "illegal" must be used: It's illegal to not declare fair-market-value of bartering as income to be taxed.
Tax authorities target bartering because they don't want it to be used as a loophole to evade taxes. But, if you help your neighbor move a sofa, nobody is going to report the neighbor as a tax evader for not counting your help as "income".
[1] https://www.irs.gov/taxtopics/tc420