RichThiel wrote:Look'in up the definition of "Barter"...Something they don't have a clue about.
I sold memberships to The "Business Owners Exchange (BOE)" a bartering clearinghouse, for two years. Businessmen entered for a fee and we acted as a bank clearinghouse and kept track of vouchers for a percentage. We had 500 members who could write vouchers on their business. For instance, if a health club owner needed a roof on his house he looked up a roofer in the BOE exchange and paid him in vouchers. The roofer could in turn use those vouchers to purchase goods and services from any other member in the BOE - he didn't have to trade services with the Health Club.
It was stated in the contract and the charter in big bold print. THIS IS NOT A TAX SHELTER. TAXES MUST BE PAID ON TRANSACTIONS TO BOTH STATE AND FEDERAL ENTITIES. CONSULT YOUR TAX ATTORNEY OR CPA!"
Of course two many conservative business owners tried to use it to escape taxes. Since we were a clearinghouse, the IRS walked in one day and copied our records. The IRS invaded all barter organizations in the mid 70s. About 70% of the businesses got nailed for failure to pay and got stiff penalties and several were charge with tax evasion. They killed the BOE and of course blamed the BOE for them getting caught cheating on their taxes. The BOE was never accused of any wrong doing.
Ya this liberal knows nothing of barter.
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