I’ve always told people they need to report and document their barter sales and expenses like they would any other sale or expense, but today I found a compelling article written by a CPA that confirms my beliefs. Here’s how to avoid an audit: Document everything Barter agreements work the same way as cash agreements, Rice […]
Under new provisions that are to take effect as of January 2011, the IRS has announced that Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, will now show the cost basis of stock sold or exchanged during the year. Under previous reporting rules, brokerages were required only to report sales prices of commodities, leaving […]
I found this on a blog, and will link to the original article, but the author points to the zero-liability advantage of using barter for legitimate business expenses. This is one of the hot points for me and barter. I love this one. The article is spun specifically for Bartercard in Australia, but it is […]
The FairTax is making somewhat a resurgence in political steam lately, as evidenced by this video that recently popped up on YouTube. The video explains the tax implications of barter under the FairTax, which end up being identitical to the implications of barter under normal circumstances.
I found a link to a site that offers free Quickbooks advice. It had this to say about recording a barter transaction. Recording of Barter ExchangesIf you have customers who are also vendors you may decide to trade some or all of your services / products in exchange for payment. To record such a barter […]
There are many ways barter can be used to renovate or restore a home. You can use barter to purchase building materials and hire contractors. Many suppliers such as tile, carpet and stone companies have huge excess inventories or items that have gone unsold. They would welcome the opportunity to get full value for the […]
Most businesses suffer from the issue of bad debts (accounts receivable that will most likely remain uncollectible and will be written off). These debts appear as an expense on the company’s income statement, thus reducing net income and most companies make a bad debt allowance since it is unlikely that all of their debtors will pay them in full. (more…)