Barter

[krhodes]

I have had so many friends ask to buy wine and I know I can’t sell it, but can I barter?

 

[Runningwolf]

Sure they could give you a donation for supplies or chemicals in the future.

 

[winemaker_3352]

That's what i do!

 

[AlFulchino]

in my opinion...and take into account that i am smiling right now and believe it or not ....trying to be well intended here...the less you write publicly about this subject...the better

hint taken?

 

[closetwine]

I can give them a bottle for Christmas, and hint that I need ______. LOL! Or I actually asked for wine making supplies for Christmas from my family, but they know I will share a few bottles here and there.

 

[Minnesotamaker]

My best advice is for you to do some careful research or ask your tax professional. I'd say that no, you shouldn't barter wine because the IRS views bartering as a taxable transaction. I'd argue that you should explain to these "askers" that you cannot sell them your wine and that you can also not trade it for other goods or services. I do on occassion share my wines with people without any expectant return. It goes to say that sometimes people view the gift as a sincere gesture of friendship and they choose to expand upon our deepening camaraderie by inviting us over for dinner or something like that.

From Wikipedia: In the United States, the sales a barter exchange makes are considered taxable revenue by the IRS and the gross amount of a barter exchange member's sales are reported to the IRS by the barter exchange via a 1099-B form. The requirement for barter exchanges to report members sales was enacted in the Tax Equity & Fair Responsibility Act of 1982. According to the IRS, "The fair market value of goods and services exchanged must be included in the income of both parties."

 

[closetwine]

Yep, stay with gifting, not bartering.

 

[MFC]

More info from the source:

http://www.irsvideos.gov/SmallBusinessTaxpayer/BusinessIncome/DoYouBarter

 

[JohnT]

I make a great effor to NOT accept anything in return for my wine. This is because that I have fun and enjoy winemaking so much... Just my luck that the ATF gets involved and closes me down for good

This is not simle paranoia. I know of some folks that got on "Da Man's" radar and has had all of their equipment destroyed with a heafy fine to boot.

Don't do it. Stay within the confines for the federal law that states you can make wine only for your own personal consumption.

 

[krhodes]

Thank you everyone, I'm perfectly happy with a good excuse to keep it all to my self.

 

[AlFulchino]

Lon brings up a good point...we recently went thru an expected and routine wine sales audit that our state frequently does ...and the fellow saw our donations.....and he said to us that *technically the people and organizations that we donated tto are committing a class b felony because when they sell a raffle ticket for example that a person could end up *winning* beer or wine makes the transaction qualify as a liquor sale...and in our state the organization must apply for and pay for a one day or *event* license/permit....a proposed law seeks to change this, but one can easily see the states' interest in this matter....groups could *evolve* and start raffling off *lots* of beverages w no money going to the states..and furthermore it would be unfair competition to legitimate liquor enterprises