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WHAT IS BARTER?

WHAT IS BARTER & DO YOU NEED TO BARTER?

 

Whether you own a corporate multi million dollar business or you are a sole propiertor, bartering can provide an alternative to using money as the trade currency for the things you need. If you are a small business owner, you could even get into barter trading to get rid of some of your surplus products, which take up space and cost you some money as well.

You can trade these products to acquire things you need to conduct your business, which you may not have the cash to pay for. Remember that products you are not moving only depreciate in value. However you can barter this products that others may not be willing to pay cash for. If you are offering services as a company bartering is a good way to gain some clientele also.

There may be some companies who may not have the cash to pay for your products or services, however by becoming a member of The Barter Corp you are able to tap into a network of new clients that will be willing to purchase your services or products using the medium of Barter.

While one-to-one bartering is practised between individuals and businesses on an informal basis, organized barter exchanges have developed to conduct third party bartering.

The Barter Corp. operates as a broker and bank in which each participating member has an account that is debited when purchases are made, and credited when sales are made. Compared to one-to-one bartering, concerns over unequal exchanges are reduced in a barter exchange.

Modern trade and barter has developed into a sophisticated tool that can sometimes help businesses increase their efficiencies by monetizing their unused capacities and excess inventories. The worldwide organized barter exchange and trade industry has grown to an $12 billion a year industry and is used by thousands of businesses and individuals.

Due to the sophisticated relational database software programs has made it easier to conduct these activities and has further advanced the barter industry's growth. Organized barter has grown globally to the point where virtually every country now has a formalized barter and trade network of some kind. Complex business models based on the concept of barter are today possible since the advent of Web 2.0 technologies

Because of this, The Barter Corp uses The Barter 21 Network along with The Do Barter Network and other Reciprocal Networks totaling over 75,000 in accumulative members.

Remember that you cannot force a cash client to walk into your place of business to do business with you. However that is not the case with Barter Dollar paying clients. The will come to you because just like you they do not want to use their cash and want to save by using their profits from their Barter Sales. Call us today or click on our BARTER TV STATION below to see videos about why thousands of business are bartering and so should you.

Why Should You Pay Cash .....When You Can Do Barter!

 

Utilize tax advantages:

Barter can be very tax friendly. Yearly 1099b reports are electronically filed with the IRS, so barter dollars are income to you. However, certain barter expenses are tax deductible.

See Below According to the IRS Website. The IRS Understands Barter. Is Time For You to Understand it and begin to raise your bottom line.

ACCORDING TO THE IRS WEBSITE: Bartering is the trading of one product or service for another. Usually there is no exchange of cash. Barter may take place on an informal one-on-one basis between individuals and businesses, or it can take place on a third party basis through a modern barter exchange company.

Bartering Income Income from bartering is taxable in the year it is performed. The rules for reporting barter transactions may vary depending on which form of bartering takes place. Learn about bartering assets and online bartering. Barter Exchanges 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. Tax Responsibilities of Bartering Participants Learn about your federal tax responsibilities for reporting bartering proceeds and staying in compliance. Tax Requirements for Barter Exchanges Barter exchanges, whether Internet based or with a physical location, are required to file Form 1099-B for all transactions unless certain exceptions are met.

Backup Withhholding and the "B" Process Backup withholding can apply to most kinds of payments that are reported on Form 1099, including payments by broker/barter exchanges. Barter exchanges are required to issue “B” notices and are subject to performing back-up withholding if barter participants fail to furnish a valid Taxpayer Identification Number (TIN). International Reciprocal Trade Association (IRTA) The IRTA is a non-profit small business industry specific organization that promotes just and equitable standards of reciprocal trade and raising the value of reciprocal trade to businesses and communities world wide

CLICK BELOW TO WATCH THE IRS VIDEOS.

Bartering Income Video

Record Keeping for Business Barter Transactions

 

 

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The Barter Corporate Connection is a member in good standing with the following organizations

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