Bartering Tax Center
Bartering is the trading of one product or service for another. Usually there is no exchange of cash. Barter may take place on an informal one-on-one basis between individuals and businesses, or it can take place on a third party basis through a modern barter exchange company.
Bartering Income
Income from bartering is taxable in the year it is performed. The rules for reporting barter transactions may vary depending on which form of bartering takes place. Learn about bartering assets and online bartering.
Barter Exchanges
A barter exchange is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis.
Recordkeeping Tips for Barter Transactions
Bartering transactions generally have associated tax reporting, accounting and recordkeeping responsibilities that go with them. The following information gives you tips for keeping records of certain types of barter transactions.
Tax Responsibilities of Bartering Participants
Learn about your federal tax responsibilities for reporting bartering proceeds and staying in compliance.
Tax Requirements for Barter Exchanges
Barter exchanges, whether Internet based or with a physical location, are required to file Form 1099-B for all transactions unless certain exceptions are met.
Backup Withhholding and the "B" Process
Backup withholding can apply to most kinds of payments that are reported on Form 1099, including payments by broker/barter exchanges. Barter exchanges are required to issue “B” notices and are subject to performing back-up withholding if barter participants fail to furnish a valid Taxpayer Identification Number (TIN).
International Reciprocal Trade Association (IRTA)
The IRTA is a non-profit small business industry specific organization that promotes just and equitable standards of reciprocal trade and raising the value of reciprocal trade to businesses and communities world wide.
