Does Bartering Work - Get Articles by Bob Brolhorst |  |
> Get Articles > Business Practice > Does Bartering Work Does Bartering Work Download as PDFBob Brolhorst bbrolhorstwave5marketing.com A-1 Internet Marketing Newsletter http://www.wave5marketing.com/newsletter.htm Does Bartering Work By Bob Brolhorst A few ot the companies that I work with and I have a great arrangement. We provide services to each other in exchange for equivalent goods or services. For example, I designed a very simple 29-page web site for a friend who sells internet advertising. In exchange for the cost of building and maintaining the site, I get free email lists from him. Another company gives me courier services in exchange for my designing their website, designing and printing their brochures. There are strict IRS regulations regarding bartering, but here are the most important things to remember. Both of you charge the going rate for your services or products. Do not mark up the product or service so you can "get more" from the other. You must charge the rate you charge all other clients. You can charge less, though. Someone has to pay the tax. When I barter my services for the courier, for example, he pays his sales tax, and I pay mine. That way, the appropriate jurisdictions still get the tax based on the value of the "sale." Make sure you record the bartered service or product as a sale for income tax purposes. You are providing a product or service for consideration monetary or in "kind" and must claim it as income. Bartering can be a great way to get essential goods and services, but remember to keep it legal, keep it recorded, and pay the taxes. For complete information on IRS rules and guidelines, go to www.irs.gov . Also check with your jurisdiction's web site or business tax office for the records they need you to keep. Saving money by bartering won't help if you end up having to pay fines for not recording income and paying the tax! Bob Brolhorst Wave 5 Marketing bbrolhorstwave5marketing.com http://www.wave5marketing.com How useful did you find this article? This article can be downloaded freely from http://www.get-articles.com and used on your website or in your ezine so long as the author is credited and their resource box left intact. You should not change any links in the article, and where the article is used on a website it's links should be clickable. Please see our terms and conditions page for more information: http://www.get-articles.com/authors-publishers-terms.php |
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