"We don't do 'cashback trades' due to tax laws"
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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