Replies

Do we have the guts to do it?

As long as it's legal, sure.

Stop spending so much. Cut back on your consumer tax payments.
Stop working weekends and over time. Cut back on your income tax payments. You really don't need that huge house. A smaller house is easier to take care of anyway. Cut back on your property tax payments.

Like to eat out at restaurants? Have a family or neighborhood cook out or movie night at home instead. You'll actually like it.
What about all the clothes in the closet? Do you really need those new pants?
Grow a garden. If you don't have the land, use containers. They'll work just fine.
Barter. If you have a service or a craft, trade it!

The key to having everything you need is not more money and more taxes. It's networking with like minded people. You'll be surprised how well your life can be when you meet as many people as possible. Through this network, you can get deals you could only dream about before - and you'll all benefit from them. Even better, the politicians are left out of all of it. Let them get their own jobs!

Be careful with the bartering. A barter exchange is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis. The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met. Under the exceptions, barter exchanges are not required to file Form 1099-B for: Exchanges through a barter exchange having fewer than 100 transactions during the year. Exempt foreign persons as defined in Regulations section 1.6045-1(g) (1). Exchanges involving property or services with a fair market value of less than $1.00. Transaction involving corporate members or clients of barter exchange may be reported on an aggregate basis. Forms 1099-B are due by February 28, 2006 (March 31, 2006, if filing electronically). Failure to file can result in significant penalties (Internal Code Section 6721). The penalty is based on when you file correct information return. The penalties are: $15 per information return if you correctly file within 30 days (by March 30 if the due date is February 28): maximum penalty $75,000 per year ($25,000 for small businesses defined below). $30 per information return if you correctly file more than 30 days after the due date, but by August 1; maximum penalty $150,000 per year ($50,000 for small businesses). $50 per information return if you file after August 1, or you do not file required information returns; maximum penalty $250,000 per year ($100,000 for small businesses. Topic 420 - Bartering Income Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties. Income from bartering is taxable in the year in which you receive the goods or services. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business. If you failed to report bartering income on returns you have already filed, you should correct this by filing an amended return, Form 1040X (PDF), for each year involved. For information on amended returns, refer to Topic 308. A barter exchange is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis. The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met. Refer to Barter Exchanges for additional information on this subject. If you are in a business or trade, you may deduct any costs you incurred to perform the work that was bartered. If you exchanged property or services through a barter exchange, you should receive a Form 1099-B (PDF), Proceeds from Broker and Barter Exchange Transactions. The Form 1099–B or other statement generally will show the value of any cash, property, services, credits, or scrip you received from the exchange during the year. The IRS will also receive the same information. If you receive income from bartering, you may be required to make estimated tax payments. Refer to Topic 355 for additional information. Additional examples of bartering, and information on how to report the income, are described in Publication 525, Taxable and Nontaxable Income. Sources: http://www.irs.gov/businesses/small/article/0,,id=113437,00.html