Pacun Posted March 6, 2014 Author Report Share Posted March 6, 2014 I love my hairdresser. When he had me do 3 years of back taxes, I got my hair done in exchange for a year & a half. 3 years of back taxes should equal 3 years of free hair cuts. Barter for the hair dresser is not a problem, she would add income on Schedule C and expense it as a business operating expense. Since she gave you such a nice treatment, you only charge for preparing schedule C and file 1040 for free, correct? In your case, you have to report the income and don't have any business expenses on your hair. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 6, 2014 Report Share Posted March 6, 2014 I 1099'd myself for the value of the tax returns, yes. Since I prepared 1099s for him the next year. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 6, 2014 Author Report Share Posted March 6, 2014 I 1099'd myself for the value of the tax returns, yes. Since I prepared 1099s for him the next year. You did it wrong, the amount on the 1099 is the value of the service you received. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 7, 2014 Report Share Posted March 7, 2014 They were the same. Besides, it was his 1099 to me. My biz didn't 1099 him since I received personal services. But you can be sure the value was included on his return since I prepared it. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 7, 2014 Report Share Posted March 7, 2014 When my hairdresser picked up her taxes on Wed, I suggested that she stop by two days a week on her way to the salon and fix my hair. I told her that would be great advertising for her. She didn't go for that idea, but laid a pile of business cards on my desk for when clients tell me how nice my hair looks. She is also going to steal my business card magnet idea because I told her they were going like hot cakes. We make our own. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 7, 2014 Report Share Posted March 7, 2014 I hate Kars 4 Kids....because all the people with standard deductions think they're getting a big refund based on this. Quote Link to comment Share on other sites More sharing options...
SaraEA Posted March 7, 2014 Report Share Posted March 7, 2014 The very worst are the attorneys and financial advisors who convince elderly people who have no money to give their homes to their kids or to start trusts. These moves backfire more often than not and are so often unnecessary because the clients don't have much in the way of assets to protect. They end up paying for gift tax returns and annual trust returns, which cost them dearly. Not to mention the dangers of giving their homes away while they still live in them. I know an attorney couple who promise that when they retire they're going to go to all those free lunches and dinners these sharks offer and loudly start asking questions like "doesn't that only make sense if I have more than $5 (or $10) million?" I'd love to be in the audience. 2 Quote Link to comment Share on other sites More sharing options...
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