[GNC] Crypto trade directly - not converting to local currency first

[Michael or Penny Novack]

>> Are there any folks in Ithaca NY using gnucash to track the local 
>> "currency"? << or in the other places where a "local currency" is in 
>> use >> For those who don;t know what I am talking about, the "Ithaca 
>> Hour" is a work exchange currency. Nominally pegged at $10/US but 
>> there is not supposed to be currency exchange << is there a "black 
>> market" exchange rate? >>
>
> Using a non-currency for trade is barter. 
> https://www.irs.gov/taxtopics/tc420 sketches the reporting 
> requirements for US taxpayers.

That is precisely why I used this particular example. While the "Ithaca 
hour" has a nominal exchange value, the way the IRS reckons, its value 
would be determined according to how used and how obtained. . The 
problem here is that the IRS is assuming that barter exchange is taking 
place "at fair market value" when in the case of something like the 
"Ithaca Hour", not so*. I bet the IRS has never decided how they want 
gains/losses accounted for. Because gains and losses would be a 
consequence of trying to place a "fair market value" on them.

Maybe they use the nominal value  << at the time it was supposed to be 
an estimate of the hourly rate averaged over all occupations; total 
pay/total hours >>

Michael D Novack

* I used to design/write/test software so an hour of my time had a fair 
market value of ...... But I'd rather spend an hour designing/writing/ 
testing software than an hour digging a ditch. Perfectly willing to 
barter hours, It's simply a very different way of figuring "fair exchange".