Anyone ever Join a Barter Network?

[JohnEGraham]

Hi, I am about to complete a "Barter" with another business owner for my Services. (Home inspection for double the cash amount of Broadway tickets )
He belongs to a Barter Network. This transaction will be outside his network but has gotten me thinking of joining one. He belongs imsbarter-com/ which appears to be a very large network. Anybody out there join one?:huh: Maybe i can trade with a good Boat mechanic.

 

[Presentation]

Do you need to account for the income at the time you offer the service to someone else and technically get $0 or do you account for it when you get the service from another business?

Same question on sales taxes.

I found this on the website:
“Are there tax advantages to bartering?
Tax-wise, barter income and cash income are treated exactly the same. There are no tax advantages - nor tax disadvantages - when bartering. Barter Network will provide your business with a 1099B form at the end of the year for all the sales you generated through our network. Similar to the cash world, any business expenses incurred through barter should be tax deductible. Consult your accountant or tax advisor for details on your particular tax situation.”


I’d want the ‘when’ clarified before participating. If you give services and build up a positive balance and need to account for the income up front you could have a double hit on your cash flow both for the cost of you providing your service and tax liability. If its all up-front I would pass.

This could also be an invitation to an IRS audit trigger.

 

[tdschafer]

Now for a serious reply. My brother and I used to belong to one with our restaurant. They can be good like when I got my driveway repaved. The guy was within 10 % of the other bids I got. But other services I priced through the network seemed to significantly jack up their prices when compared to other regular bids I got for the same work. Being a restaurant with a fixed menu I obviously could not and would not do that. So after a while we dropped out of it. So I guess what I'm saying is just make sure you are getting fair dollar to dollar value. Todd

 

[JohnEGraham]

I guess because of the acceptance of "Barter money" you are limited in what you can buy, so it is worth less and you have to charge more. I am selling a Service ( Home and termite inspections) I would add the extra cost ( 7.5% plus $15 a month) at first then go from there. The thing I really like it adds a New Customer that I would not have!