Is Bartering or Trade Tender legal?
Posted May 13th, 2008 by voterp
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Hi!
So if there were to be a currency that had some simple basis in trade would it be legal? As long as it is not circulated through banks?
Does anyone know? I am not an expert or I would not know how to do it. But lots of people are thinking of a type of paper that is honored in service or perhaps food trade?
Thoughts?
Thanks,
Liberty Girl.
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Hi
It shouldn't be illegal...it should be entirely legit so long as it's not labeled legal tender.
But...if you want to read the case of the Liberty Dollar, I recommend it.
I can sum it up...they issued gold certificates, which were backed by and redeemable to gold bullion. They had 100% reserves, meaning for every certificate printed, there actually was a set amount of gold in their vault.
Fast forward to November 14th, 2007...Liberty Dollar's office and bullion storage were raided by the FBI, all of the company equipment, records, gold and silver bullion, and even 2 tons of freshly minted Ron Paul dollars. They have been planning on auctioning this bullion off immediately, but the company owner filed a class action on behalf of all of the people who are now holding worthless certificates.
They have a littany of charges pending, including money laundering, fraud, counterfiting, and conspiracy to do all of the above. I haven't seen too many details on the charges, they seem paper thin.
Lesson to learn: regardless of the legality, don't try to compete with the federal reserve.
I posted this a few days ago
I use this company and trade about $800 worth every month. I have a friend who trades more then $5000/mo. I have been very satisfied. They are world wide, hopefully they will have something in your area.
FYI; you are 'supposed to' pay tax on trade :) do what you will with that info.
http://www.dailypaul.com/...
Yes
As long as the pictures and designs on them don't look too much like U.S. legal tender. If it's not likely it would be confused with official U.S. money, it's fine.
As for barter, of course it's legal to trade stuff.
As far as I know, based on
As far as I know, based on what I read a number of years ago bartering is legal. You are supposed to place dollar values on what you barter so that you can pay taxes on the purchases, etc.
In regards to local currencies, there are several areas in the country with their own local/town currencies. They are intended to help keep that money being spent in the local areas. Here's one currency used in an area of Massachusetts: http://www.berkshares.org...
it is legal...but...
it is taxed as INCOME. a buddy of mine we researched this a few years back. we were thinking of setting up a web-site so that people who wanted to barter or trade things could find matches for what they wanted to trade for. but IRS tax code claims that "trading" is income. and you must pay taxes on the trading "transaction". which is a crock in my book.
You're right. It is a crock.
How is that "income" determined?
Nevermind. That's hypothetical. I know we agree here. :)
worth is calculated supposedly by
current market price. if you trade a car for 15 cows then the IRS looks at it like you owe them sales tax.
we researched this trying to come up with a cashless way of getting goods that you would need so that when there is no more physical money and you use a "mark" to pay for everything with...one could remain outside the system and survive. but they(IRS) have that route covered it looks like.
fed motto: every transaction must be taxed.