Originally Posted by
Denny Crane
For the sake of argument ('cause I like a good argument!) What's the difference between the farmer tilling the painters back 40 and giving him the cow? I mean, that farmer raised that cow from a calf and has invested time and energy into it. That cow's probably worth a lot!!!
Denny
Are we talking Angus, Longhorn, Waygu or Kobe? 😁
By trading the meat away, the farmer has no accession to wealth because, at the end, it's a zero sum game for him. He has less in his meat locker now in exchange for a painted barn so his overall wealth remains unchanged. If the farmer tills the painter's back 40, his meat locker remains unchanged - he has not given up anything (other than his time and effort) but his efforts got him a painted barn which is the exchange of a service for a service and therefore it becomes income valued at the fair market value of the service received.
Clear as mud?
If only the Super Bowl was as "exciting" as a Sunday evening tax discussion. 😁