SMALL BUSINESS OWNERS SOMETIMES BARTER PRODUCTS AND SERVICES THEY NEED. THE FAIR MARKET VALUE OF PRODUCT OR SERVICES THEY RECEIVE IS TAXABLE INCOME ACCORDING TO IRS.
1. ORGANIZED BARTER EXCHANGES IS REQUIRED TO ISSUE 1099-B FOR PROCEEDS FROM BARTER TRANSACTIONS TO THEIR MEMBERS.
2. BARTER OR TRADE DOLLARS ARE IDENTICAL TO REAL DOLLARS FOR TAX REPORTING PURPOSES.
3. FAIR MARKET VALUE OF BARTER PRODUCTS OR SERVICES IS REPORTED ON TAX RETURN.
4. INCOME FROM BARTERING IS TAXABLE IN THE YEAR IT IS PERFORMED. IT MAY RESULT IN BUSINESS INCOME, TAX LIABILITIES, AND CAPITAL GAINS OR LOSSES.
CALL KASH @ (925) 963 4891 ON TAX Q & A.
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