Legalities of bartering with home brew

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Under normal circumstances, I'd say no. But youre on the last frontier man! Barter away.


***I'm not a lawyer...and don't play one on tv, and I have a half bottle of Russian River Consecration in me now. I wouldn't trust my judgement.
 
Question:

Is it legal to trade your homebrew for goods/services?

Is there a lawyer in the house?

I'm not a lawyer, so we'll wait for a real one.

But, in my opinion and understanding of the laws in my state (Michigan), that would not be legal. Since homebrew is not legally salable, and only a 6pack per person can legally be given (not sold) per person, that would seem to me to be a "no". You can give somebody a 6pack in Michigan, as far as I know, but that's it.
 
I'm not a lawyer, so we'll wait for a real one.

But, in my opinion and understanding of the laws in my state (Michigan), that would not be legal. Since homebrew is not legally salable, and only a 6pack per person can legally be given (not sold) per person, that would seem to me to be a "no". You can give somebody a 6pack in Michigan, as far as I know, but that's it.

Does the law actually say 'six pack' or does it include an ounce/liter/whatever value?

If it just says 'six pack' (and knowing MI I would not be surprised if it did) who's to say you can put six kegs in a nice wooden 'carrier' and give that away? Or six 40 ounce bottles?

In either event, what the gooberment don't know won't hurt 'em. That's my unsolicited and uneducated opinion on the matter.
 
You should be fine so long as you aren't going to the DMV or some other government agency and trying to pay in homebrew.

The barter system is very much alive and kicking. You are not "selling" you homebrew and there inlies the main crux of the situation.
 
you could barter for a case of "beer bottles" and they just so happen to be filled ;) ""wink wink nudge nudge"

Isn't that how a lot of people sell booze online? They sell the bottles for their 'collector value' and they're still filled because 'they're worth more'?

That how some people get around not being able to ship beer. They ship bottles of "yeast samples". :mug:
 
You should be fine so long as you aren't going to the DMV or some other government agency and trying to pay in homebrew.

The barter system is very much alive and kicking. You are not "selling" you homebrew and there inlies the main crux of the situation.

Well, I hate to be a naysayer, but the IRS considers bartering to be a form of income: http://www.irs.gov/taxtopics/tc420.html

So, if you barter with homebrew and receive a service or goods with value, then you've sold homebrew.

Be careful, and be smart!
 
I had the original homebrewing statue from the TTB linked in another thread asking the same question, but it appears the TTB has changed their site and the link is no longer good.

But yooper is correct any form of EXCHANGE for homebrew is considered illegal under the 1978 repeal of the ban on homebrewing, H.R. 1337...unless of course you become licensed to do so, and pay taxes.

In fact Bartering of alcohol of any type is illegal, period, even for licensed retailers.

Trading or Bartering

The trading or bartering of alcoholic beverages for cash or in exchange for different alcoholic beverages by and between retail liquor dealers, in order that they may take advantage of special deals involving quantity discounts or free goods offered by wholesale liquor dealers, is not a bona fide loan of liquors described in Revenue Ruling 54-509 which outlines transactions constituting bona fide loans. Such trading or bartering constitutes sales for purpose of resale and engaging in this practice would subject the retail dealers to liability for special tax as wholesale liquor dealers and would necessitate the acquiring of basic permits as wholesale liquor dealers. This ruling relates only to the trading or bartering of merchandise between retailers after purchase thereof by one or more retailers individually, and not to the cooperative purchasing of alcoholic beverages by several retailers, dealt with in Revenue Ruling 56-204.

26 U.S.C. 5111; 27 CFR 194.28

And if you are planning to do so, I wouldn't be discussing it on the largest homebrewing site on the web......
 
If it is a friend doing you a favor (cutting some wood for you) he/she can offer their service for free to you. Irrelevant to the previous free service you can offer them some homebrew for tasting purposes.

That how some people get around not being able to ship beer. They **** bottles of "yeast samples". :mug:

Is that what happens when you drink the yeast at the bottom of the bottle too many times in one night? :tank:
 
What Revvy means to say is that he's actually a BATF agent, and he's planning on confiscating your stash of homebrew. That's how he stays stocked. :D

Haven't you heard, it isn't the BATF anymore...after 9-11 they don't care about a bunch of monshiners and homebrewers these days...it's all fertilizer bombs and "crotch rockets" now.

The beer/wine/spirits have been handed over to the TTB...The Alcohol and Tobacco Tax and Trade Bureau

It's ALL about the taxes now....


THIS is what keeps me in homebrew....all those impressionable new brewers who believe me when I say their homebrew is infected and they need to send it to me for proper disposal. :D

beerinspectorcard_copy.jpg
 
Wow, I've really been out of the loop. I try to distance myself from the federal government as much as possible though. ;)

Yeah things have changed in this new world order. ;)

On January 24, 2003, the Homeland Security Act of 2002 (the Act) split functions of the Bureau of Alcohol, Tobacco and Firearms (ATF), into two new organizations with separate functions. First, the Act established The Alcohol and Tobacco Tax and Trade Bureau (TTB) under the Department of the Treasury. Second, the Act transferred certain law enforcement functions from Treasury to the Department of Justice. The ATF law enforcement functions were transferred to the Justice Department and was renamed the Bureau of Alcohol, Tobacco, Firearms and Explosives.

TTB's Field Operations are organized into five divisions:[1]

1. National Revenue Center: reconciles returns, reports, and claims; screens applications and promptly issues permits; and provides expert technical assistance for industry, the public and government agencies to ensure fair and proper revenue collection and public safety.[2]
2. Risk Management: develops, implements, and maintains monitoring programs for collecting the revenue due the Federal Government and protecting the public, and ensures resources are effectively used.[3]
3. Tax Audit: verifies the proper payment of alcohol, tobacco, firearms and ammunition excise taxes and ensures compliance with laws and regulations by taxpayers in a manner that protects the revenue, protects the consumer, and promotes voluntary compliance.[4]
4. Trade Investigations: comprises investigators who ensure industry compliance with the laws and regulations administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). TID's investigators: --Ensure only qualified applicants are granted permits to engage in the production and distribution of alcohol and tobacco; --Investigate allegations of trade practice violations in the marketplace; --Examine Certificates of Label Approvals (COLAs) to deter unauthorized usage; --Promote voluntary compliance with the laws and regulations enforced by TTB; --Prevent misleading labeling and advertising of alcohol beverages; --Ensure public safety by responding to credible information suggesting a health-related contamination or adulteration of an alcohol product; and --Conduct investigations of suspected alcohol or tobacco tax evasion.[5]
5. Tobacco Enforcement Division: protects the revenue and promotes voluntary compliance by monitoring the domestic tobacco trade, ensuring only qualified applicants enter the tobacco trade, ensuring compliance with the tax laws relating to tobacco, and facilitating TTB's enforcement functions in cases of non-compliance.[6]

Also, the Advertising, Labeling, and Formulation Division (ALFD) implements and enforces a broad range of statutory and compliance provisions of the Internal Revenue Code (IRC) and the Federal Alcohol Administration Act (the Act). The Act requires importers and bottlers of beverage alcohol to obtain certificates of label approval or certificates of exemption from label approval (COLAs) for most alcohol beverages prior to their introduction into interstate commerce. ALFD acts on these COLAs to ensure that products are labeled in accordance with Federal laws and regulations. ALFD also examines formulas for wine and distilled spirits, statements of process, and pre-import applications filed by importers and proprietors of domestic distilled spirits plants, wineries, and breweries for proper tax classification and to ensure that the products are manufactured in accordance with Federal laws and regulations.[7]
 
The short answer is "NO" :mad:, but I'm with others that be discreet about it and no one will hassle you. I don't know what state you live in, but below I have attached the federal statute that permits homebrewing. All states can permit homebrewing, in accordance with federal law, i.e. the states can be more restrictive, but not less restrictive. This is why some states, like Alabama and Mississippi, don't have homebrewing, even though it is permitted by federal law (...signed in 1978 - Thanks Jimmy Carter!)

What this means is that the federal law prevails in the "removal of beer" section - you can only take your beer off premises to enter it into a homebrew competition (you couldn't even go to a buddy's house with your beer). Even if your state said you could take your homebrew and give it to a friend, federal preemption prohibits states from overriding the federal laws.

GearJammer

________________________________

Statute
United States Code Title 27, Part 25, Subpart L, Section 25.205 and Section 25.206
Beer For Personal or Family Use

§ 25.205 Production.

(a) Any adult may produce beer, without payment of tax, for personal or family use and not for sale. An adult is any individual who is 18 years of age or older. If the locality in which the household is located requires a greater minimum age for the sale of beer to individuals, the adult shall be that age before commencing the production of beer. This exemption does not authorize the production of beer for use contrary to State or local law.

(b) The production of beer per household, without payment of tax, for personal or family use may not exceed:

(1) 200 gallons per calendar year if there are two or more adults residing in the household, or

(2) 100 gallons per calendar year if there is only one adult residing in the household.

(c) Partnerships except as provided in §25.207, corporations or associations may not produce beer, without payment of tax, for personal or family use.

§ 25.206 Removal of beer.

Beer made under §25.205 may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions such as homemaker's contests, tastings or judging. Beer removed under this section may not be sold or offered for sale.
 
So then, what if instead of beer, I wanted to sell a "homemade remedial ointment" or "organic tincture" or something along those lines?
;)
 
I think Yooper and Revvy are right on track.

However, its not really a concern on the government to find out homebrewers who are giving their beer to people. I mean, if you're giving someone cases and cases for a large job, that might be a problem. But if you're friends and you swap some of their skills or effort for some homebrew, no logical person anywhere will arrest you for it.
 
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I've mentioned this before, but a lot of people don't realize that bartered goods are also supposed taxable...

Don't you just love that COPS video...what a misinformed MF he was...

I know I've been "blind druck" on HB, but not REALLY blinded???
 
Is that what happens when you drink the yeast at the bottom of the bottle too many times in one night? :tank:

Whoa, whoa, whoa, sir, no need for swears. ;)

:mug:

And doesn't that hurt? :D

Remember kids, always proof read your posts. :mug:

Sorry, late night at the brewery....been known to cause spelling mistakes.
 
Yoop you can gift a lot more than a sixer. I found this on the MI DELEG web site


(c) The gift to an individual for noncommercial use or consumption of up to 20 gallons of beer, wine, mead, honey-based beer, or cider produced under the circumstances described in subdivision (b). This subdivision does not allow a person less than 21 years of age to possess, receive as a gift, or give beer, wine, mead, honey-based beer, or cider produced under the circumstances described in subdivision (b).
 
The statute quoted above only restricts trading homebew for cash or other liquor. Since it is specific about those 2 items, it strongly implies it would be ok to use homebrew to barter for the services of others. I was going to post an ad on craigslist offering to barter homebrew for some work around the home. I am still hesitant, but I think I will go for it!
 
The statute quoted above only restricts trading homebew for cash or other liquor. Since it is specific about those 2 items, it strongly implies it would be ok to use homebrew to barter for the services of others. I was going to post an ad on craigslist offering to barter homebrew for some work around the home. I am still hesitant, but I think I will go for it!

Bartering is bartering regardless of whether it's for goods, services or what have you..... The homebrew laws are pretty specific, in that they state we're allowed to brew beer for personal consumption only. Not to be used in lieu of cash, which is what bartering is. It's a method of exchange, and is illegal.
 
The statute quoted above only restricts trading homebew for cash or other liquor.

That statute posted above is from MI. Assuming you are located in Arkansas, you might not want to risk your freedom based on a law from another state, ESPECIALLY since BOTH states are part of the UNITED STATES, and the Federal homebrew legislation - which bans ANY bartering no matter how you word it - trumps any state law.
 
I can put you in contact with an attorney that will tell you that bartering, trading, selling homebrew is illegal.
And this includes getting ingredients for you etc.


Don't DM me if:
1) You want to remain blissfully unaware of the law.
2) You think you are AL Capone. (they got him on the tax thing you know).
3) You want to post like you think you found a loophole.

Or you could just take me word for it.

Also. There is the law and what your state's liquor agents decide. They are not necessarily the same thing. They generally don't err on the liberal side of legal interpretations.
 
So happy a guy at work offered to pay for me to brew him a batch of Stout. He and his wife both liked my samples. Now to figure out if I can do this legally somehow...
 
I wonder if you could do this by brewing at the house of the person who purchased the kit? Then split the results? If both A and B do the work, is it A's because he bought the ingredients? or B's becasue his equipment? or A's and B's?

BTW, as for Yoopers statement of '6pack' gift I think it varries by state. In my state (VA) you can gift 1 gallon/ year (check before you go to court :) )
 
I've always been of the opinion that "it's only illegal if you get caught"...

The likelihood of you getting caught is really small, unless you do something stupid, like POST ABOUT YOUR ILLEGAL ACTIVITIES ON A PUBLIC WEBSITE...

I'm wondering if the 1st forum post bump of this thread was a troll...
 
Nah, there's GOTTA be a way to brew beer and sell it without paying any taxes, or breaking the law. There just HAS to be! Come on, guys, THINK! How can I make money off of my homebrew?? ;)

Start instructing people in the art of home brewing. Go to their house with your equipment. Sell them the ingredients, fermenter and bottles, or lease them the fermenter and bottles. Teach them how to brew in their own homes before they invest in the remainder of the equipment. That way you aren't doing the brewing. In some states you might need a business license though.
 
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