Hey Katt and Vince: What a great idea to get people on SUN bartering. I love the concept myself.... on Ebay I`ve used the userID Barterer1 for 6 or 7 years now. I`m in Chicago but we could virtual barter for now. Hmmmm. What do I have?.....I`ll barter a link on either website Uglys.com or Packedwarehouse.com. I can also arrange barter for food ! ! ! I can ship frozen Chicago style condiments and hot dogs or anything on my menu for that fact. I can barter some musical abilities..... from New Media Jingles. They write music to back podcasts, webinars, etc. Let me know if anyone would like to barter for anything mentioned above.
Barter is terrific, it`s natural, and a total no-brainer.
People have been barter since before they had language.
And then, the tax collector came along.
Barter, my friends, is taxable.
You`ll find more information in an article I wrote years ago for a magazine http://www.taxmama.com/Articles/Barter.htm
Once you understand IRS`s point of view, you`ll find it easy to track your transactions. And when you`re exchanging business products/services for business products/services - there won`t be any tax effect.
It`s only when you get personal things in exchange for your business products/services that it becomes taxable.
Sorry to be the bearer of less than wonderful news.
But better to hear from me and be prepared, than to be surprised by IRS - and have to pay.
P.S. Vote for me, even though this isn`t what you wanted to hear
Yep, it`s best to keep it to business. Thanks for that reminder, taxmama. The Illinois Trade Association keeps track of what is bartered and sends me the tax info I need to submit each year. Vince, we talked about Illinois Trade Assoc. in an earlier conversation. I`ve been with ITA for a number of years. ITA makes bartering and keeping track of those transactions easy. Not sure who would keep track if we formed a bartering club here. We`d have to examine that aspect.
I am willing to do internet research, as well as some translation work (Italian and Spanish to English) in exchange for someone refining my business plan, and doing something in terms of the financials, which has me lost. I have the chance to get a loan from a credit union for an e-commerce business that allows you to sell and they send payment every month. This has nothing to do with the SUN Project, as I would love to have my Caterina Fashions & Beauty firm collaborate with that project.