In the US, if I were to trade commodities for labor would I pay tax? For example I pay John in beef to remodel my kitchen
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FWIW it’s a similar logic to buying goods in a state you don’t live in.
Let’s say my state sales tax is 8% and travel to a different on vacation. While there I shop at the state-run liquor store that has 0% sales tax and on the way home I stop in a different state to buy a necklace for my partner and that state has a 4% sales tax.
In theory I should write all this down and remit to my state the 8% sales tax I avoided paying on the liquor and the (8-4)=4% in sales tax I saved on the necklace.
Of course, very few people actually do this, but states and the IRS are starting to crack down much harder due to things like Remote Work and Online Shopping changing the way we live and purchase goods.
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