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05/27/2008

Barter Is Good Business

Barter is more than just a fair exchange of goods and services between two businesses. It often provides financial and marketing bonuses for both sides as well.

It�s best to work through a trade exchange network, which acts as a broker for its clients� goods and services.

Such networks have thousands of clients, making them a viable source for many business needs, such as office equipment and supplies, printing, advertising, cleaning and maintenance services, professional services, and travel and entertainment.

All barter income is on the cash basis, and the IRS treats barter transactions as income received for both accrual-basis and cash-basis clients.

The value of trade dollars received must be included in gross income for the tax year in which they are credited to the client�s account.

Some of the goals barter can achieve are marketing advantage, debt collection, cash conservation and lines of credit�particularly when a business needs to borrow money to relocate, expand, or launch a marketing program.


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