The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
November 23, 1999
In this week's report. . .
Special Report From BarterNews Third of a Five-Part Series...
All Barter Deposits Are Not Taxable Income
Every January, as required by law under TEFRA, all of the approximately 500 organized trade exchanges in the U.S. provide the IRS with statements showing the total amount of barter credits deposited into each and every member's account during the previous calendar year. However, some of these barter deposits may not be taxable income.
(Your trade exchange also provides this information to you in the form of 1099Bs, "Proceeds from Broker and Barter Transactions.")
Here is a look at another one of the five kinds of barter deposits which are sometimes improperly taxed. You may want to file this important information and show it to your own tax advisor to determine how to report your trade dollar income.
Cash Purchased Trade Dollars
If you have a need for more barter credits, and are unable to borrow them, you can usually buy them from another trade exchange member often at a cash discount-sometimes as high as forty or fifty percent.
Although cash purchased (discount) trade dollars are not taxable, the IRS will expect you to pay a tax on all trade dollar credits...because they don't realize some of those credits fall into the non-taxable category.
In order to avoid paying taxes on non-taxable income you will want to discuss this with your tax preparer. When we publish the fifth article in this series we will give you more specific information on how you may report these items.
Greater Los Angeles Economic Output
The Los Angeles region, defined by UCLA geographer-economist Allen Scott, extends from Santa Barbara down to Tijuana. The all-inclusive population is 17 million, and it is one of America's global regions with economic output of more than $500 billion a year.
That's considerably more than the economy for the entire country of Mexico, the Netherlands, or Australia...and nearly as much as Spain or Canada.
This dynamic region is poised to see additional trade exchange activity with new barter companies stepping into this marketplace, as barter activity in Southern California is but as fraction of what it could be. Now, only a handful of exchanges populate this enormous economic region.
ClassicVision Entertainment Acquiring TradersWorldwide.com
San Diego-based ClassicVision Entertainment has signed a letter of intent with a new internet company, TradersWorldwide.com (TWC).
TWC offers specific web sites for businesses and consumers to trade, through classified advertisements and auctions. The company is in the process of securing web sites for every state in the U.S. and the provinces in Canada, before expanding globally. It envisions providing over 500 web sites for these trading activities.
TWC is also set to offer franchise opportunities for these web sites once they're launched. The first of these virtual sites, Oregontraders.com, is already online. The balance of the 50 states is expected to be launched prior to year end.
John Bauska, President of ClassicVision Entertainment, exclaimed, "We are especially excited to share the vision with TradersWorldwide in bringing the first virtual franchise opportunity online."
United Media Holdings Major Barter Syndicator
United Media Holdings, a leading Hong Kong-based diversified media and entertainment company, was founded in 1987 by CEO Danny Hui. Initially a full-service production house, today they are a major pioneer of barter syndication of TV programs in China. Their network in China now covers over 250 million TV households with a potential audience of 900 million.
The company is in the process of establishing a Chinese language entertainment-focused internet portal, ChineseE.com. The new effort will enable United Media to leverage their media expertise, as well as their entertain ment-programming library, and well-established relationships with the leading advertising agencies and broadcasters in the region.
Here And There...
Executive Director Position
The International Reciprocal Trade Association (IRTA) is seeking to fill the position of Executive Director, to lead the 200-member organization into the new millennium. The Director must be able to manage all aspects of this 20-year-old, Chicago-based, business organization across international lines.
This individual will work closely with business and consumer media, as well as members of the association (globally), the large board of directors, and its committees...plus maintain a close relationship with the Corporate Barter Council. The Director will also manage an administrative staff, which conducts IRTA's day-to-day operations.
The Director is not required to live in Chicago. He or she will be very instrumental in coordination IRTA's annual congress, and computer knowledge is recommended.
Coming soon. . .
We welcome your comments, questions, and observations.
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