Is this legal?

[seth8530]

Hey guys, my fortified sweet strawberry mead came out to be a success. I claim this because a few people around my age who claim to be wine lovers really enjoyed my mead and actually wanted to buy some ( shh I know this does not exactly make me a blue medal winner quite yet). Now I know that selling is a definite no no that will get you into serious trouble if the wrong people find out...

However, trading is fine. We can trade wine all day long and it would be OK. Now my question is, could I trade my wine for commercial wine/ liquor? It is not selling, and it is trading.. eh?

What are your thoughts...

 

[Dend78]

i love posts that the title is "is this legal"

there shouldnt be an issue there in trading out, i can trade you a bottle of wine for anything you have ie car, wife, dog, unborn child (check the laws here this may be a grey area), guns, wine commercial or non.

there are no real barter laws and even if there are whos to say you didnt buy the commercial stuff yourself or that it was given to you as a gift?

 

[GreginND]

Of course you can't sell, barter or trade non-bonded homemade wine. But the TTB does allow you to take your wine to organized wine tastings and events. They don't prevent you from giving your wine as a gift to someone.

If someone would like to give you a gift of wine, I think that is fine. It wouldn't be a barter.

You should check the laws in your state though.

http://www.ttb.gov/wine/24_75.htm

http://www.americanwinegrape.com/blog/index.php/2012/06/20/home-wine-making-laws-for-each-of-the-50-states/

 

[GreginND]

i love posts that the title is "is this legal"

there shouldnt be an issue there in trading out, i can trade you a bottle of wine for anything you have ie car, wife, dog, unborn child (check the laws here this may be a grey area), guns, wine commercial or non.

there are no real barter laws and even if there are whos to say you didnt buy the commercial stuff yourself or that it was given to you as a gift?

Actually there are legal issues with bartering. The IRS considers it a legal taxable exchange.

http://biztaxlaw.about.com/b/2010/05/21/6-things-to-consider-about-barter-transactions.htm

 

[Dend78]

Actually there are legal issues with bartering. The IRS considers it a legal taxable exchange.

http://biztaxlaw.about.com/b/2010/05/21/6-things-to-consider-about-barter-transactions.htm

i forgot about those IRS guys, yeah so gift exchange

 

[TonyP]

Federal law (Liquor Control Act of 1934) states, "'Sale' means any transfer, exchange or barter in any manner, or by any means whatsoever ...". Of course there's the practical side of things and I can't imagine anyone getting upset over this. However, it seems to me if you hire someone to do work and pay him in wine, you've committed a federal crime.

Note that anyone sending me a bottle of wine for providing this information is automatically exempt from prosecution.

Tony P.

 

[Bartman]

Actually there are legal issues with bartering. The IRS considers it a legal taxable exchange.

http://biztaxlaw.about.com/b/2010/05/21/6-things-to-consider-about-barter-transactions.htm

This is true, however the IRS also knows it has no way of controlling or taxing barter transactions, since, almost by definition, there is no record or paper trail of the transaction to audit after the fact. Legally, we are constitutionally allowed to contract with whomever we choose for any (legal) purpose (no contraband arms dealings with the Sandinistas, Ollie North - ), and for the most part it is caveat emptor (buyer beware). So, who is to say you got that bottle of wine in a trade for another bottle of wine, instead of, say, for letting your friend watch the Super Bowl on your new big-screen TV; during the game, he helps you move your couch so you have easier access to the wine cellar, so you let him pick a bottle of wine to take home. With all the undocumented 'exchanges' for goods and services that a fertile mind could conceive, the IRS has no way of keeping up; moreover, the exchanges we are discussing are "de minimis" and not worth the IRS' time to mess with.

Now, more seriously, there are big-time, big-money exchanges that are documented and regulated significantly for tax purposes, primarily, 1031 exchanges for multi-million-dollar property, which are done for the express purpose of abiding by the tax code's regulations.

 

[GreginND]

Yes, the point is never call it a trade or a barter. Words matter. They are gifts freely given with nothing expected in return.

By the way, be careful about giving wine as a "donation". I've had friends get in trouble for donating their wines for charity silent auctions.

 

[seth8530]

Hmm, this is interesting.. So do you think I would be in the good for gifting someone some wine and they gifted me a bottle of Buffalo Trace?

 

[GreginND]

Hmm, this is interesting.. So do you think I would be in the good for gifting someone some wine and they gifted me a bottle of Buffalo Trace?

Yes! No problem with gifts.

 

[Bartman]

Yes! No problem with gifts.

Up to $13,000 annually to any one person, $14,000 for 2013.

This ties into the ongoing thread on what's your wine worth...

 

[Brew and Wine Supply]

You let the cat out of the bag with the first post. Just keep quiet.

 

[Midwest Vintner]

Definitely not legal for commercial wineries, fyi. Every bottle is to be accounted for.

 

[GreginND]

Definitely not legal for commercial wineries, fyi. Every bottle is to be accounted for.

As long as the taxes are paid a Winery can certainly give, barter or sell their wine.

 

[seth8530]

As long as the taxes are paid a Winery can certainly give, barter or sell their wine.

^^ Truth! It is!

 

[Midwest Vintner]

As long as the taxes are paid a Winery can certainly give, barter or sell their wine.

I'm not so sure about this, but the cfr is down.

 

[derunner]

Does this vary by state? Technically, i don't think gifting is legal in my state. Sharing in my home is legal, so you can invite friends over.

§ 707. Home manufacture of beer or wine for personal consumption.

(a) No license or special permit shall be required for the manufacture within homes, or other premises used in connection therewith, of beer in quantities of 200 gallons or less during any calendar year, or wine in quantities of 200 gallons or less during any calendar year, for the personal consumption only of the homeowner(s), their families or their guests; provided however, that such beer or wine shall not be offered for sale.

(b) Such beer or wine, when manufactured and used as set forth above, shall not be subject to any taxes imposed by the Liquor Control Act.

(c) Beer and wine manufactured pursuant to this section may be removed from the home and transported for personal or family use, and in addition may be transported for the purposes of participating in club-sponsored events and tasting competitions.

(d) Notwithstanding any other provision in this chapter or title, concentrated alcoholic beverages are not “home-manufactured beer or wine” for purposes of this section, and all Commissioner regulations and tax requirements concerning home-manufactured beer or wine shall not apply to concentrated alcoholic beverages.

 

[GreginND]

Yes, it does vary by state. That statement about consumption only of the homeowner, etc. is not in the TTB regulations.

 

[bein_bein]

I never sell my wine, instead I have "bottles of colored liquid to be used for decorative purposes only." In fact I am even thinking about putting "NOT INTENDED FOR HUMAN CONSUMPTION" on the bottle.... I can't be held responsible for what people do in the privacy of their home... right ?:

 

[seth8530]

Heheeh very nice.

BTW, I was wrong. I winery can not gift away wine that is intended for sale. However, Im pretty sure they can gift it once they are off the premise or in a non professorial setting.