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I'm trying to trade 3 of my watches for a watch on watchfinder. After their initial offer I countered with even trade (my 3 for their 1). They responded, "We don't do 'cashback trades' due to tax laws" and increased their offer amount by a bit for each watch (not enough to get near even though). I tried to google these tax laws including for my state (WA) but I don't understand. Can you explain what they're saying here and the tax implications of this kind of transaction?
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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
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