Whatís Happening In Todayís
Marketplace...The Use Of Trade Exchanges & Corporate Barter
Bartering A Panacea For More Companies In These Challenging Times
The Canwest News Service reported in a recent article that the
global economic downturn is driving more companies to barter as cash
becomes more precious. Thatís especially true for companies that are
affected by the lack of credit available in the financial markets.
Barter provides a way to keep businesses operating without having to
take on more debt.
From a tax stand-point barter transactions are treated the same as
cash. In the U.S., trade exchanges (barter networks) are required to
file forms (a 1099B is sent to every member) detailing the annual
barter sales of members to the IRS.
No such rule (mandatory filing of forms to the Canadian Revenue
Agency) exists in Canada. However, in 1988 the Canada Revenue Agency
released a statement saying every dollar bartered is equal to one
Canadian dollar, and should be accounted for and reported for tax
Direct Trade In Pensacola Was The Introduction To Barter
Direct trading with a friend or business associate is often the
first introduction to barter. Such was the case for two women in
Pensacola (FL) recently, when a Mary Kay Cosmetics representative
found a local independent photographer who was willing to barter.
Each wanted what the other person had to offer, thus they agreed to
trade an hourís worth of photography services for a selection of
Mary Kay products. Itís often difficult to find someone who will
trade with you, and you both have a coincidence of wants. But when a
satisfactory experience of that nature happens, then one is likely
open to the idea of joining a commercial trade exchange...where the
membership has a plethora of products and services they wish to
Thanks to a shaky economy, bartering ó both on a direct basis as
well an through a trade exchange ó is growing in popularity.