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View Full Version : Should I Trade My Jeep Cherokee for a Paint Job on My House?



Pat Germain
04-15-2011, 9:25 PM
I just put my 97 Jeep Cherokee for sale on Craigslist. It's a two-wheel-drive Jeep and I'm asking $2,000 for it. I got a call from a guy who said he owns a house painting business, he's been in business for seven years and wanted to know if he could paint my house for the Cherokee.

I told him I wasn't interested in trading my Jeep. But the fact is, I do need my house painted. I was planning on getting some bids next week. And I was expecting it to cost more than $2,000.

If we draw up a contract with the Jeep as payment, what's the difference than a contract with cash as payment? I would certainly ask for references from previous clients, as I would from any painter. I checked online and he really does own a local painting business. He uses Kwal paint which I'm pretty sure is a good quality paint.

I'm thinking I could save some dough by trading my Jeep for a paint job on my house. What do you folks think?

Dan Friedrichs
04-15-2011, 9:30 PM
Perhaps in terms of making the contracts as easy and enforceable as possible, you write two : One contract to sell him a Jeep for $2k, and one for him to paint your house for $2k.

Brian Elfert
04-15-2011, 9:32 PM
You're only coming out ahead if the paint job is worth more than what the Jeep would sell for as a cash sale.

The painter probably doesn't want to exchange any money because then he has to pay taxes on the money. Legally, I believe the painter has to pay taxes on a barter as income, but the IRS is less likely to get wind of such a transaction.

Pat Germain
04-15-2011, 9:40 PM
Thanks for the suggestion about two, separate contracts, Dan. I like that idea.

You make a good point, Brian. But wouldn't that be the painter's problem and not mine?

Brian Elfert
04-15-2011, 10:03 PM
Yes, the income taxes are the painter's responsibility and shouldn't be your problem. If you ask him to pay cash for the jeep and then give him back the money for the paint job he might not want to do the deal that way.

The IRS is trying to crack down on barter transactions because hardly anyone reports barters as income for tax purposes as is required.

Larry Edgerton
04-16-2011, 6:21 AM
Of course now that it is all over the internet all the IRS has to do is follow the Jeep........

Pat Germain
04-16-2011, 10:21 AM
Gee, that's a good point, Larry. :)

I ended up selling the Cherokee. I had two guys on the phone last night very eager to buy it. And I thought it would be a tough sell because it's not four wheel drive.

I gotta say, I've had very good results with selling cars on craigslist. I think it helps to have good pictures and a very good description of the vehicle; warts and all. I think by letting people know up front about any issues, cosmetic or mechanical, it helps them to decide if they're interested. It saves them time and it saves me time. I also think it sends a positive message about me as a seller if I'm honest and up front about the vehicle.

I also talked to the painter again last night. Although we won't be trading the Jeep, he seems like a good guy. I'm going to ask him to submit a bid to paint my house. No, I don't think that was his objective all along.

Brian Elfert
04-16-2011, 6:05 PM
Does anyone really think the IRS has time to visit Internet forums looking for possible tax fraud such as this? It would the painter's problem, not the OP's problem if the painter didn't declare the Jeep as income. The IRS wouldn't even know how to find the painter if the transaction had gone through.

Dan Friedrichs
04-16-2011, 7:52 PM
I gotta say, I've had very good results with selling cars on craigslist.

+1. I've sold 2 in the last year on CL, and had them both gone within a few days, for significantly more than the blue-book price. I can't believe people who try to sell cars on CL, though, and don't make any effort to clean them. I suppose if you are a slob, you don't even notice that your relatively-new car is totally trashed - but I do! I think a few hours with a toothbrush and a bottle of windex has to be the best thing you could possibly do to sell a car...

Joe Angrisani
04-17-2011, 12:42 PM
......I think a few hours with a toothbrush and a bottle of windex.....

Next time try the windex with some compressed air and an old towel. MUCH faster and EASIER.

On a vent, for example: Spray a little windex in and around the vent. Hold an air nozzle in front of the vent. Hold an old towel folded sorta-big over the whole area. Keep the towel close (an inch or less - you can't see what you're doing but that's fine) And blow blow blow. The dirt and grime blows out with the wet windex into the towel, and you're done in seconds. Took me longer to describe that than it does to do it. Certainly no need for "a few hours".... :)

Larry Edgerton
04-17-2011, 4:18 PM
Hey Pat!

I have been wondering what one of those Cherokees in two wheel drive get for mileage?

If I had known that is what you had I may have bought it. I am looking for a cheaper way to get to work, but still be able to carry a few things. I had a Volve 240 wagon that I should not have sold that was perfect, hauled a lot and got about 25mpg average.

This van is killing me at 150 miles a day. I am thinking about a new small truck, but not positive yet. Let me know what you got if you would, thanks.......

Larry