trade accounts?

Discussion in 'Lawn Mowing' started by Brianslawn, Sep 12, 2005.

  1. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    who all does trade accounts? instead of getting paid money, you get their product and/or service for free... or get money and discount, etc...

    over the years ours have included:

    dentist
    lawyer
    doctor
    restaurants
    phone book - free yellow page ads
    radio - free ads, concerts & backstage access, meals, movies, etc.
    sign shop
    screen printer - free company shirts and apparal
    might be adding auto parts store next year.

    anyone else do stuff like this. it gives us more yards to mow and we were needing their service anyways. they like have one more customer and one less bill, too.
     
  2. green thum

    green thum LawnSite Member
    Posts: 162

    $200.00 a month worth of food at a local greek restaurant.I am good friends with the owner and his wife approached me one day to take a look at their yard.very good food,but need to watch the waistline!!!!!!
     
  3. Nosmo

    Nosmo LawnSite Bronze Member
    Posts: 1,216

    Trading your services for another's service is called Bartering. I certainly am not going to tell anyone what or what not to do.

    I just wanted to let you know the IRS considers Bartering to be an income to both parties. I know no money has changed hands but the IRS wants the value of the service or whatever included as income on your 1040.

    I used to do Income Taxes for a few years but I did not know of anyone who reported this income or was caught not reporting it. Even did it myself (Bartered) traded doing a return for a load of firewood.

    Nosmo
     
  4. TheKingNJ

    TheKingNJ LawnSite Senior Member
    Posts: 781

    I feel more comfortable saying here is your bill, may i please have mine. I don't give them discounts so i don't expect one from them.
     
  5. Nosmo

    Nosmo LawnSite Bronze Member
    Posts: 1,216

    Just thought of something else. I'd be careful about talking about what you are trading and receiving. We don't know who is monitoring these forums and an IP can be traced back to you.

    Nosmo
     
  6. Metro Lawn

    Metro Lawn LawnSite Silver Member
    Posts: 2,112

    I have 2 that I have done for years. We do however issue an invoice for our service and they do the same for me. I get cleaning service and massages in trade for lawn service. Actually works out ok.
     
  7. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    I do that with the print shop. I cut their lawn, and I get free flyers, business cards, etc.
     
  8. South Florida Lawns

    South Florida Lawns LawnSite Platinum Member
    from usa
    Posts: 4,785

    all the time.

    barter for food
    Diesel mechanic
    auto mechanics
    signs
    amc movies.

    Its cool and for the most part works out just know you price and theres to make sure its even for both parties.
     
  9. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    I don't know anyone who considers bartering income...it's a wash
     
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    It's not a wash as far as taxes go, if you're bartering for personal needs, not business needs.

    Say you do $200 worth of work for the local mechanic, and he in turn puts a new gasket in the engine of your mower. That would be a business expense on both of your parts, ie, tax write-off for you.

    Now, say you do $200 for the above example of Greek food. That would NOT be a business expense (unless you showed you took clients there regularly for a meeting over lunch / dinner), therefore you'd owe the tax money on that account.

    I used to barter as well, years ago, until I sat down with one of my clients, a business owner and he showed me how you'll never get ahead in the end by bartering.

    It seems like you're getting something for nothing, but you're working for it.

    Take that $200 of Greek food for example. Even at $50 / week, eventually you're going to get sick of eating Greek food every week, just to get your "balance" used. You're much better off just getting paid, and then paying the client back when they perform a service for you. This way, you can take the $200 and use it at the Greek place if you'd like, or you can take your $50 one week and eat at McDonalds for lunch and dinner all week.

    I don't barter anymore.
     

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