All Income is to be reported

[Christian Liberty]

Hell yeah. Everything. You should report NOTHING to the feds.

Agree. Although I fail to see why capital gains would be handled differently than income if income taxes were a good thing to begin with (Which they aren't, obviously.)

 

[Sonny Tufts]

Also, what something is worth is arbitrary. If, in trade, an agreement is made, like the 3 chickens to a pig example, then the two parties agree that they are worth the trade. What either is worth to others is of no consequence, else the guy with the pig could have gone elsewhere.

The fact that the exchanging parties agree that the items being swapped are equal in value doesn't determine whether there's been gain. Moreover, if there are market prices for the items being exchanged, the values aren't that arbitrary.

 

[ClydeCoulter]

The fact that the exchanging parties agree that the items being swapped are equal in value doesn't determine whether there's been gain. Moreover, if there are market prices for the items being exchanged, the values aren't that arbitrary.

Market prices aren't for personal exchange. Sure, it can be used as a general guideline.

I have cattle. One of my cows might go for $1.20 a pound at auction, or $1.00 a pound in a personal local sale or trade. But I am not guaranteed to get $1.20 at auction, and I might even get more, but that depends on who makes bids and whether my cattle were among the first on the auction block. I might just eat the little guy.

A friend of mine sold his bull for less than .50 lb, because he was tired of fixing the fence and chasing him back into the pasture. It was worth it to him.

I exchange my labor, at times, for nearly or absolutely nothing. I know that if I need something down the road that the person will help me, or, I know that the other person can't afford what I would normally get. Who is going to make the call on what that is worth?

 

[phill4paul]

I don't have an income. I have a flow. It comes in. It goes out.

 

[Seraphim]

This x 1776.

Hell yeah. Everything. You should report NOTHING to the feds.

 

[PaulConventionWV]

Because the government doesn't want to chance the market with you when it taxes you. It just wants gains, no losses... and since it has a monopoly on force, it can do that with no recourse, so pretty par for the course as far as governments go.

 

[PaulConventionWV]

I don't have an income. I have a flow. It comes in. It goes out.

I see, so how could you describe that money that comes in with one word?

 

[Red Green]

I see, so how could you describe that money that comes in with one word?

Revenue. Economically speaking, you only have income for period X if your wealth is greater at the end of period X than it was at the beginning.

 

[NorthCarolinaLiberty]

I see, so how could you describe that money that comes in with one word?

Bypass.

 

[PaulConventionWV]

Revenue. Economically speaking, you only have income for period X if your wealth is greater at the end of period X than it was at the beginning.

That's called profit.

 

[MRK]

I exchange my labor, at times, for nearly or absolutely nothing. I know that if I need something down the road that the person will help me, or, I know that the other person can't afford what I would normally get. Who is going to make the call on what that is worth?

I can definitely relate to that. By chance I met a hotel and travel company owner a few days ago. After she found out what I do I gave her some free consulting advice for her businesses. She gave me a coke as I was leaving. Now I'm meeting with her tomorrow to discuss a software development deal.

 

[Red Green]

That's called profit.

Not really. At least not in economics. In economics, real profits are driven down to 0 by the market.

 

[phill4paul]

I see, so how could you describe that money that comes in with one word?

Flux.

 

[jbauer]

Concerning taxes if you make money on a venture you have to claim the income. When you lose money on a venture you can only deduct the loss to offset gain. Does that seem like it makes any sense?

It's income if it's less than 365 days and is also a short term gian/loss which can be added/subtracted from income 100% in the current year. If you own the asset 366 days or more then it falls under the capital gains rules for which you can claim unlimited gain/loss all the way to zero. 3000 can be taken off ordinary income per year from your long term capital losses until you exhaust your losses.

 

[jbauer]

Agree. Although I fail to see why capital gains would be handled differently than income if income taxes were a good thing to begin with (Which they aren't, obviously.)

It is a fairer way to deal with gains from an investment. You might only show gain from that investment 1 year. If it all fell under income taxes you'd be charged a significantly higher rate. Either way the debate on taxation is another debate.