This ad will close in

Tricks Of The Trade

Taxes, Of Course

Before joining a barter exchange network, you should know the IRS doesn't differentiate between bartering and selling and is cracking down on unreported trade transactions.

Since 1982, the federal government has required barter exchanges to report all sales and income that members gain through trading. At the end of the year, barter exchanges send out two copies of each member's IRS Form 1099B: one goes to the exchange member and one goes to the IRS. The dollar value of goods and services traded is counted by the IRS as taxable cash income and can be deducted as business expenses, where appropriate.

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the December 1999 print edition of Entrepreneur with the headline: Tricks Of The Trade.

Loading the player ...

Social Media Prediction: Video Is Going to Be Bigger Than Ever This Year

Ads by Google

0 Comments. Post Yours.