Selling laundry soap?

[lenarenee]

I am so weird; I love making laundry soap. I've been giving it away, but people are willing to pay for it.

I'm fully aware of the need for insurance and other factors before selling body soap. Where does laundry soap fall?

Would accepting a box of borax or jar of coconut oil in trade for making someone a batch of laundry soap be acceptable?

 

[The Efficacious Gentleman]

Personally, I would say that it doesn't, as long as it is informal and not too structured.

When you go to someone's house for dinner and you take a bottle of wine - you aren't buying the dinner with the wine, but you are giving someone something for their effort, for their time, to say thank you. If someone gives flowers instead of wine, or chocolates or something, it is the same. This does not mean that the host has to have their kitchen up to commercial regulations and be considered a restaurant.

 

[Susie]

^ What TEG said.

Also, if you are in the US, I would go so far as to say as long as you do not go out into the general public with any sort of advertisement or pricing structure, you should be OK with small, private barters. And I think the bartering of ingredients for laundry soap is a good idea. You get your laundry soap fix, they get laundry soap.

 

[pamielynn]

The IRS expects you to pay tax on any barters. Not kidding.
Just like the Texas food law says you can't bring any prepared food into a private residence.

But, seriously, I would be aware of any local laws on bartering since you are planning to use the barter for resale in your product. Totally one of those situations that flies under the radar, but just want you to be aware that yes, you are supposed to claim the price of a barter on your taxes and pay the local sales tax on it. Ridiculous as that is.

 

[neeners]

wow...over-regulated much?!?!? you can't bring prepared food into a private residence in Texas?!?!? that's INSANE!

I agree with what TEG said. i wouldn't advertise to the general public, but if friends asked/offered, i wouldn't hesitate to trade/barter.

 

[pamielynn]

wow...over-regulated much?!?!? you can't bring prepared food into a private residence in Texas?!?!? that's INSANE!

I agree with what TEG said. i wouldn't advertise to the general public, but if friends asked/offered, i wouldn't hesitate to trade/barter.

They've changed the cottage industry rules, but the the law on bringing prepared food into a private residence is still on the books. I'm surprised they don't stake out dinner parties and after-funeral gatherings. But I'm a horrible cook, so I use this law to my advantage, LOL.

 

[Lion Of Judah]

..... the IRS now requires barter exchanges to be reported as per the Tax Equity and Fiscal Responsibility Act of 1982. Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form. According to the IRS, "The fair market value of goods and services exchanged must be included in the income of both parties.

 

[neeners]

hey man...don't give them the idea. I can see the FDA (or whoever enforces that law) hiding in people's bushes and busts them. hehe

 

[Lion Of Judah]

hey man...don't give them the idea. I can see the FDA (or whoever enforces that law) hiding in people's bushes and busts them. hehe

who is "them"
that info i placed above was taken from the Karl Hess case against the IRS , he use to barter to hide his assets so he did not have to pay tax , so that came about after due to that case
That law is enforced by the IRS.

 

[neeners]

I was responding abt the law in texas where you can't bring prepared food to a house...hence FDA.

 

[pamielynn]

Not that it matters, but it would be the Health & Safety Dept knocking on your door to confiscate that veggie lasagne and cheese danish

 

[lenarenee]

Thank you everyone to pointing out the possible problems with selling/bartering laundry soap. I've decided to just stay out of it simply to avoid the time and effort of handling all those legal detail. I'm not a detail person and it's just not worth the work for 2 or 3 batches of laundry soap. I don't have a problem paying taxes...it won't amount to much. But this is just a hobby and all of that paperwork will take the fun out of it.

You know, the govt really does a disservice in that aspect. A trade or barter like this: supplies to make something as a healthy and useful hobby shouldn't be taxed...there's no profit here, only an exchange. Not only that, but homemade laundry soap is better for the environment.

I will continue to make soap for myself, and give away what I can. But I'd have a lot more fun if the legalities didn't punish me for ....good clean fun!

 

[neeners]

totally understand. like I said, some people are comfortable bartering under the table, but you must decide what you're comfortable in your dealings. best of luck, and happy soaping!

 

[Belinda02]

As long as it is a hobby and income remains low than barter would be nonreportable. A hobby business usually shows an overall loss year after year. The IRS doesn't want individuals righting off hobbies. Research hobby business at their site and u will see what I mean. It could be reportable to another business if they are large enough but I'd be surprised if they bothered but they are not your problem.