[ale] [OT] (but computer and cryptography related) Bitcoin, Litecoin

[Brian Stanaland]

On 3/30/13 9:10 PM, "Michael B. Trausch" <mbt at naunetcorp.com> wrote:

>
>However, if I execute a barter transaction where I trade you something
>that can be shown to be worth only a few bucks, reasonably, on a
>good-faith basis, and you give me something that is worth a few hundred
>bucks, reasonably, on a good-faith basis, then I have received "income"
>and must record that based on FMV.
>
>The real problem comes when you cannot easily determine FMV for one or
>both sides of a barter transaction.  Then a bit more effort has to be
>done (and in such a case I simply wouldn't make the trade---I am
>somewhat lazy in that regard).

Determining Fair Market Value is an extremely wishy-washy affair. The
government will almost always value something higher if it's getting taxes
on it and lower if it's forcing someone to sell (eminent domain). I just
registered a car from out of state. Georgia says it's worth $13,000. I
could not sell it for over $10,000. Another example is home values.
Fayette county valued his house (which he bought in an unfinished state
after the builder filed bankruptcy) as though it was complete.

I would agree with not making the trade.

--Brian


>
>	--- Mike
>
>-- 
>Michael B. Trausch, President
>Naunet Corporation
>
>Telephone: (678) 287-0693 x130
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