trading service for perks

[Mykster]

Have you traded your services for any kind of perks? The LCO I bought one of my mowers from told me that he took care of an Applebees Resteraunt, they offered free food and drinks instead of payment for as long as he had the acct.

A buddy of mine, who was gonna be a new client told me that he wouldn't need my services because he had to buy this cabin on a lake now from the present owners. But then, he offered to let me and my family stay at this cabin any time as long as he wasn't there in trade for mowing. He's got jetskiis, boat, and other accomidations we are welcome to. Sounds tempting.....

[Albemarle Lawn]

The bill is $20/cut and we are paid in store credit. The deal is we only do the cutting when we happen to be in the area, no special trip.

The amount of work is about 8-10 minutes. The deli is great and the sandwiches and ice cream are great. Keeps the taxman out on both the income and sales tax end.

We used to buy lunch there anyway, then one day the lady that owns it said her grass guy was un-reliable, and we had a deal.

K.B.

[Soupy]

I used to cut a resturaunt that had an are of grass about 5' x 30' which wouldn't have been worth my minumim so I traded for lunch once a week.

I know a guy that cuts a Dobb's and he just keeps a tab. When he needs tires or his truck worked on they barter.

My dad used to own a Shell Station and had a barter system worked out with the local radio station. He traded Gas for Airtime.

It can benefit both parties if the services are needed. What you need to ask yourself is. Will I use it enough to justify the trade. Which I'm sure that's the question you have been kicking around in your head all along.

Soupy

[totallpm]

We do not do many but this works for me

Pizza joint very small next to one of our larger accounts 2 large pizza and soda every week.

Cut one residential $25.00 a week for unlimited use of home in ST George. (golf capital of the area) and buy one get one golf vouchers.

Snow plow for mechanic $75.00 per push straight dollar for dollar trade on mechanical work.

Bakery pays us our fee and gives us about 12 doz fresh bagels each week for my crew.


It works for me.


Kevin Total lpm

[Pro-Cut Lawns]

Yep...Had a guy Im acquainted with call me and said he didnt have time to mow his lawn this year and wanted to know if I would do it. I have one next door so not a problem. Its a small yard and I can mow it with my 21" JD in a few minutes. Never have to unload the Lazer. He is in business for himself and does Electrical, plumbing and various home repair work. Hes excellent at what he does. So, he goes to pay me the first mow and I barter with him. We keep tabs on what he owes me for mowing and hes going to do some work for me at home, such as putting in new faucets. If I owe him a difference when he does the work, I pay him and we wipe the slate clean and start over. I generally take care of things at home myself, but......... I HATE PLUMBING!!!!!!

[rkbrown]

I'm getting back into the business part time after working my way through college doing lawn service. Back then, I had a client who owned a stand alone veterinary clinic. I would do his clinic and home in exchange for veterinary services. We both kept tabs of the costs and would settle up the difference during the annual checkup/shots visit. With two active bird dogs, it turned out to be a very amicable agreement.

[Brickman]

For several years I had a chiropractors office. During the summer months we traded. I got two appointments a month and about a $26 check every month from her.

Another Dr. (MD), used to mow his house, and shovel his side walks at his office. Would trade for Dr. appoinptments. I think I always came out a head, as he would trade me a Dr. visit for one side walk job.

I really think that a guy would have to be careful tho, and make sure every thing is understood before hand. If there are any misunderstands, get them worked out ASAP. With deals like these, things could go sour real fast if not done carefully.

[Planter]

Traded a sprinkler system to a lady who cuts my wife's hair. Wife would got get her hair done for free (against the tab) and leave with a check from the lady for $50.00 each time. Lady wanted to trade it down faster, so she did the hair and then paid my wife.

[Runner]

Originally posted by Planter
Traded a sprinkler system to a lady who cuts my wife's hair. Wife would got get her hair done for free (against the tab)
Wow! What a way to get a head! :D (Just a funny - sorry you guys had to hear that!:p ) Anyway, I have a cousin that used to take care of a Bennigan's restaurant, and they used to give him free dinner coupons for all kinds of extra stuff. For instance, he would blow out the back curb of gravel, and they would give him two whole free dinners just for that! He ended up with a whole stack of dinner coupons. That's alot of money!

[Got Grass?]

Talking to the Bar/Wing Place owner the other day I plow for tabs in winter. She asked how much I'd charge, being a small lawn (15min. cut & 2 pipes & a telephone pole to trim arround, no blow) I said: "Ahh prolly $20 if ya send someone out to pick up after the drunks". She responded with: "How about $25 each time in Tabs, I make someone pick up and pay for any flats?". I'm like sure, Heck I spend that much in there now between Drinks and of cource this being Buffalo, Wings... You guys only think you know what real chicken wings are.... HA

[LawnLad]

Unfortunetly trade is supposed to be reported - as you have received value for your services. It is as good as cash when it comes to the tax man.

You've got to wonder though - how much commerce actually exists that is on a barter basis that goes unreported. Goes back to villager days of 3 chickens for a pair of shoes type deal.

There are organizations set up to do trade/barter between members. There is more reporting involved - but might be worth it if you're in to a lot trade and you need other people's services.

[Got Grass?]

Yeah, Gov, wants the money anyway thay can get it... Honestly who here reports it? (If ya dont then just dont respond wouldnt wanna admit anything "bad")...

If there was a formal agreement for a "trade of services"...

If ya wanna get technial...

Just dont claim the gallon of gas/etc... it takes each time on yer taxes. Then your doing it as a favor to a friend with your own equip. and as a token of thier apprecation gave you something in return.

Heck, honestly who cuts their own lawn? Sould I start charging myself to do it? or sould I not deduct the gas/etc... I use? What about an employees lawn? Then it would be a fringe bennifet...
Can I charge myself a quarter each time I mow my own lawn and pay the govt. $1 in taxes for the year?
Really...

[Brickman]

Today this guy calls me. His old (read scrub) lawn service quit on him. He needs a good guy to take care of his yard, and make it look GOOD. I told him I was the guy that could do that. Any way, turns out he is owner of several liquor stores, and car washes here in town. Said he would trade me beer for work. I told him I never developed a taste for beer, but maybe could trade for car washes.
I bet I will have the cleanest lawn care truck in town.

[darryl gesner]

It seems kind of funny to me that some of the same people who bash "Scrubs" becasue they don't operate legitimately admit to cheating on their taxes. Income from barter is taxable.

If you don't believe me, here's a direct quote from the IRS on the topic:

Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties.

Income from bartering is taxable in the year in which you receive the goods or services. If you failed to report bartering income on returns you have already filed, you should correct this by filing an amended return, Form 1040X (PDF), for each year involved. For information on amended returns, refer to Tax Topic 308.

Sounds like you guys need to fill out form 1040X for all those taxes you didn't pay.

[Toroguy]

Shame!

[proline32]

I once knew a fella who operated a chain of barter exchage business all over the US. I used to trade Mowing services for all kind of stuff, Dinners, house cleaning, Premium grade costa rican coffees. It's a good way to do things. It does suck that the IRS always wants to stick thier foot in everything.

[Planter]

Originally posted by darryl gesner
Income from barter is taxable.

Yes, it is and that's why I reported the trade as income. A little tax paid now is a lot of trouble avoided in the future.

[bruces]

Originally posted by Planter


Yes, it is and that's why I reported the trade as income. A little tax paid now is a lot of trouble avoided in the future.

Whether or not you are understating taxes depends on what you are trading. If you are trading services for items that would be business expenses (repair work, truck washes, etc.) the fact that you are not reporting the income would be offset by the fact that you are not reporting the expenses.

Where you have liability for taxes would be situations discussed like the mowing for haircuts or bar tabs, etc.

And one of the first questions the IRS will ask if you are audited will be if you do any bartering.

[Holloway Lawns]

I have a friend who does some lawns and he takes care of a Video rental store for 8 free rentals as payment per month. I would not do that. I do not trade any services at this time but not to say I would not do it.

[LAWNS AND MOWER]

I mow this burger joint and discussed trading off. Instead of going up $5/cut this spring, I get a $5 food credit each mowing. They liked the idea and agreed. Also mow for a killer seafood restaurant and get a $10 food credit each mowing on top of $30/cut. Also mow for my mechanic and mow in exchange for auto repairs. Works out great. I'm going to start doing some landscaping for my massage therapist in exchange for massages!! Can hardly wait to start that job.

LAWNS AND MOWER

[turfsup]

One of my present customers hooked me up on a friend of hers who is a masouse (spelled right?). She has a tiny yard that will only take 20 minutes and I'll receive a 30 minute massage. She normally charges $50 an hour so I figure I'm getting one heck of a deal. Trading is GOOD!:)

[haynestotallawn]

I traded maint. service on a buddy of mines yard in exchange for a troy built garden tractor. It'll do until I can upgrade, and it sure beat's the push mower.

[yorkpaddy]

I look for barter opportunities wherever I can find them. My large lawn used to let me keep my dirtbike there, now someone else does. I did a trash hauling job for a guy, 1 truck load, $100, and I got a 4x8 trailer from him. One of my old customers had a pool that I was free to use at any time.

I work part time for a construction company and they do all kinds of bartering. I have my cell phone thorugh them, and I mow my bosses' lawn twice a month to pay my bill, its quick and I d don't have to worry about mailing the bill away. Whenever I need some help with something they normally help me out fiixing my equipment or loaning me extra stuff of theirs. I can probably borrow my bosses jet ski when I want to.

[TFL]

mow for a print shop they keep us supplied with card invoices etc. in return we keep the lawn mowed