If you are a member of a trade exchange it’s time to check your account and see how many trade dollars have been earned during the year, and check how many of them have been spent. All trade dollars earned are income. (TEFRA Act of 1982.)

You will receive a 1099B from the exchange and the IRS also receives a record of trade dollars earned. A tax liability occurs when you don’t “expense” (spend your trade dollars on business-related items over the year.) So if you don’t want to pay Uncle Sam cash (taxes) for earned trade dollars not yet “expensed” begin immediately to spend them for business-related items.

See informed on all barter issues, read the Tuesday Barter Report on BarterNews.com
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This entry was posted on Tuesday, November 25th, 2008 at 9:51 am and is filed under From the Desk of Bob Meyer. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.