Friendship fee service and tax

  • Thread starter Thread starter anon91549587
  • Start date Start date
Status
Not open for further replies.
A

anon91549587

Guest
A friend of mine contacted me as he wanted to engage me as his personal trainer. I offered him a fee lower than my standard. Every transaction i make is logged in by me for personal accounting and tax submission. I am self employed and registered my own company, hence tax needs to be paid.

is it okay not make the transaction “official” in my log so that i don’t have to make this exchange taxable? Just to be clear, what is logged into is what i directly receive into my bank account. I have been paying my tax in full since my reversion because the bible tells me so and i do it joyfully.
 
Last edited:
Not to be a downer but any type of “cheating” when it comes to taxes is a sin and should be avoided. Would your action be considered illegal where you live?

Also, can you tell me about how you got started being a personal trainer? I’m interested in becoming one after I retire from my current job.
 
Just don’t charge your friend. Let him buy a round drinks at the pub instead.
 
Under US tax code, if you receive money for a service, it’s taxable (in general; there are a few exceptions). Even at a reduced rate for a friend, this would still be considered business income.
 
Sounds like a question for a tax accountant. Are there tax breaks for loss leaders or something along those lines? I tend to agree that unless there are specific legal reasons you can avoid the taxes, you are obligated to pay them.
 
That’s a pretty hefty gift, considering this guy is a professional, and this would probably be an ongoing weekly commitment of at least 30min.
 
Ah, disregard then. Sounds like you just need to pay the taxes like normal.
 
thanks for your reply, yeah i am a professional and i ought to give to the government so they can use it to maintain the country. I was thinking that since im charging low, after the tax and all. I am left with little.

I kept doing bodyweight training and comparing my form with photos and paused videos. I also did lotsa reading on anatomy and specifically physio/rehab/muscle manipulation work. Eventually i flew overseas to get myself a cert in Calisthenics ( Kalos Sthenos in Greek ), skipped the typical personal training certs from ACE/NASM and self advertised. God has been blessing my work and knowledge to lead people to better health .
 
yeah and besides, not making someone pay for a health service makes the client neglect and not value it. It also upsets the market in these times when people would go on social media for free workouts and the professionals dont get paid for their hard work.
 
yeah no reason for me to evade tax to make more money. I will lift up this less earnings to the Lord.
 
anon91549587 said:
yeah no reason for me to evade tax to make more money. I will lift up this less earnings to the Lord.
Click to expand...
Barter. What can he offer you that you need that’s roughly equivalent to what you’d charge? Maybe let him borrow your car for ten minutes and he can fill it up for you. Need a wall painted? He’s the painter. Go out for dinner and let him pick up the tab. Like wine or a decent bourbon? Maybe he’ll give you an early birthday present.

Is it cheating? Don’t ask me…
 
Barter is taxable.

By providing a service, whatever it may be, trainer, lawyer, accountant you are selling your time and talents.

If you choose to charge one person less than another, that is perfectly fine, but since you are simply selling your time, it is still income. If you receive no benefit, money or other thing of value, you have no income.

The time you invest in something is worth nothing to the gov. If I work someones taxes and spend hours on it and they don’t like the results and don’t pay me. I don’t get to deduct anything for my time. They don’t get a copy of the completed return, they simply get back what they gave me to work it up. But the only expenses I have are the electricity, paper and toner that I used when working it up, nothing for my time.
 
Check your laws. Barter is not taxable, which is the reason the ”gub” doesn’t like it. No money changes hands, no transaction has taken place.
My silly example: You need fertilizer to grow tomatoes. I give you manure from my animals with the understanding that you give me some tomatoes in return. No monetary transaction of any type has taken place. No monetary value to base a “tax” on, so, no tax.
Further, to what would the expected “tax” apply? The poop? The market value of the tomato? What is the accepted poop-to-tomato value ratio we can consult?
Should we send the “gub” a piece of the tomato, and/or the…fertilizer?
And, the last: You and I both buy an item. We give these to each other. Not taxable. Any tax owed was paid with the initial purchase of said items. No transaction, no tax. (Car or home would not apply here. Referring to lesser items, or service to which a “value” cannot be assessed. Intangible even better.)
Barter, and be at piece.
Dominus vobiscum
 
Last edited:
What do you do for a living? What country do you live in?

Are you in the manure business, or is it simply a by product or waste product from your business you need to dispose of.

The OP clearly stated she was in the training business and was giving training service.
 
Last edited:
Page linked goes to historical and archived content no longer updated. (Warning at the page header)
Dominus vobiscum
 
Nope, not in that business, but I probably have the “capital” required.
It appears the mention of “one small business trading with another” is your “loophole” if you wish to see it as such. Businesses trading services with each other is not happening here.
Your link first paragraph (emphasis mine):

Bartering is the exchange of goods or services. A barter exchange is an organization whose members contract with each other (or with the barter exchange) to exchange property or services. The term doesn’t include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis (for example, a babysitting cooperative run by neighborhood parents). Usually there’s no exchange of cash. An example of bartering is a plumber exchanging plumbing services for the dental services of a dentist.
No “organization of members” as defined. Also “Doesn’t include “informal exchange”.
An individual (her friend) trading a good or service for her assistance is neither a commercial, nor business to business barter by definition.

Dominus vobiscum
 
Last edited:
Status
Not open for further replies.
Back
Top