Figured I'd try here since most bike guys seem to like their mechanical toys!
Have a bit of an interesting deal unfolding... basically, have a company that owes me about 20K, but the owner has a boat worth a little over 10K that he's selling.
So, in my mind... I'd basically be reducing my invoice by 10K, which cuts the HST I'm charging by 50%, giving him another $1200 in value. Since I'm not exchanging any funds for the boat (just service that's already been rendered), I also would not be paying HST on the boat purchase.
Just to take my logic one step further - I'm basically looking at this in terms of a car trade-in. If I'm buying a $20,000 car, but trading in a $10,000 car, then I'd just be paying $10,000 +tax + old car, not selling them the old car for $10,000 +tax, then paying $20,000 +tax on the new, right?
Anyway, maybe I'm over-simplifying (complicating?) this, so appreciate insight from anyone else that's been in a similar... boat.