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Bartering within cottage food law limits

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This topic contains 2 replies, has 2 voices, and was last updated by  Nikki 1 year, 10 months ago.

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  • #37033 Reply

    Nikki

    I read that the IRS expects their cut when bartering, by counting the traded goods as income. But I’ve also read about the legal bartering of homemade food that’s not legal to sell. Here’s my question: In states with a cap of how much can be made through the Cottage Food Law, do barter/trades count toward that income limit? I’m lost of where to look for an answer.

    #37171 Reply

    David Crabill
    Keymaster

    I do not think that any cottage food law is sophisticated enough to specify bartering transactions as monetary transactions that count against your sales limit. If it were me, I’d only count monetary transactions against the sales limit, and I’d be highly surprised if ignoring bartering transactions were illegal.

    #37412 Reply

    Nikki

    Thanks, that was my thoughts too. But my thinking started going in circles so I needed a 2nd opinion.

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