Anyone Ever Think Of Barter?

 
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Old 12-07-2008, 10:11 PM   #1
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Anyone Ever Think Of Barter?


Has anyone ever joined a barter group?

We just joined one about a month ago and it has been somewhat successful. This group is NJ based and has about 1700 members from every type of company imaginable. Most realize you have to pay cash for some materials or products, cant just give it away. But the labor is all barter dollars. We then use the barter money to do all our print work and ads (val pac, papers, direct mailing ect.) for free.

Anyone else try this?
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Old 12-07-2008, 11:12 PM   #2
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Re: Anyone Ever Think Of Barter?


Nice in theory but no thanks & make sure you talk to your accountant - The IRS will love you & your list of associates

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Old 12-07-2008, 11:15 PM   #3
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Re: Anyone Ever Think Of Barter?


Quote:
Originally Posted by SLSTech View Post
Nice in theory but no thanks & make sure you talk to your accountant - The IRS will love you & your list of associates
X2
You pay taxes on trades
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Old 12-07-2008, 11:40 PM   #4
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Re: Anyone Ever Think Of Barter?


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Nice in theory but no thanks & make sure you talk to your accountant - The IRS will love you & your list of associates
How can i say this nicely.......i really cant but do a search on google and learn about it before you make a comment. This is nothing new and has been around for many years.

If you have to pay sales tax it is done in cash, and i would assume you have a sales tax cert. given to you by the state you conduct business in no?
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Old 12-07-2008, 11:59 PM   #5
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Re: Anyone Ever Think Of Barter?


Quote:
Originally Posted by MEDIAINSTALLS View Post
How can i say this nicely.......i really cant but do a search on google and learn about it before you make a comment. This is nothing new and has been around for many years.

If you have to pay sales tax it is done in cash, and i would assume you have a sales tax cert. given to you by the state you conduct business in no?
Nicely - is a smart idea

Bartering has been around since the beginning of time. I know this, I assume you know this or are learning this, the IRS knows this & yes the states know this. With this in mind...

I did not comment on your sales tax issues as each state is different & I have no knowledge of NJ - thus no comment. Some require a Transaction Privilege Tax license, an Occupational License (In my Case), etc...

I did recommended that you talk to a tax adviser - why? The IRS - that is a Federal Government entity also known as the Internal Revenue Service & this is what they have to say

Quote:
Topic 420 - Bartering Income
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties.
Income from bartering is taxable in the year it is performed. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business. If you have failed to report this income correct your return by filing a Form 1040X. Refer to Topic 308 for Amended Return information.
A barter exchange is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis.
The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met. Refer to Barter Exchanges for additional information on this subject. If you are in a business or trade, you may deduct any costs you incurred to perform the work that was bartered. If you exchanged property or services through a barter exchange, you should receive a Form 1099-B (PDF), Proceeds from Broker and Barter Exchange Transactions. The IRS will also receive the same information.
If you receive income from bartering, you may be required to make estimated tax payments. Refer to Publication 525, Taxable and Nontaxable Income, for additional information.

Have a nice day - I'm sure there will be a nice gentleman or lady contacting you shortly saying "Hi, I'm for the government & I am here to help" You might want to call your accountant now...
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