Archives for March 2018

It’s Time to Prepare for the Taxman

Famous author Margaret Mitchell had a way with words when she said: “Death, taxes, and childbirth! There’s never any convenient time for any of them.” Certainly, many would agree. However, the tax deadline is quickly approaching – you must file by Tuesday, April 17, 2018.

This year, there has been a lot of news about tax reforms for 2018, however, taxes filed for 2017 won’t include the new changes so now is a good time to focus on getting these filed. For clients of The Barter Company, you should have received your 1099-B forms that reflect your barter activity for 2017. There won’t be any changes concerning barter in 2018 – you’ll still have to report it as taxable income just as in years past.

If you file your own personal taxes, it’s a good idea to get organized. Make sure you have all your paperwork including W-2 forms, 1099s, receipts, quarterly payments, and any other pertinent documentation. Since the tax code is complicated, working with an accountant or tax preparation firm might be a better way to handle taxes. Any tax professional will need the same paperwork so put your files in order and maintain a good tax organization system throughout the year.

Filing electronically is how many accountants and CPAs recommend businesses and individuals submit their taxes. It’s the safest and most secure way to file your taxes. It helps avoid filing mistakes, offers faster preparation, and provides quicker refunds if you’re expecting one. Most states accept electronic filing as well when you file your federal taxes. And, there is no charge to e-file either federal or state taxes. If you have to pay additional taxes, you can still file electronically and either send a check or share your bank account information with the IRS to automatically deduct the amount due.

For 2018, start reviewing the new tax code and understand how it impacts your business. There are changes to deductions that could work to your advantage or disadvantage. Again, spending time with an accountant is usually money well spent – especially when there are a number of changes.

If you need help with getting your taxes organized or finding a reliable CPA or tax preparation firm, contact The Barter Company. We have a list of barter clients that can help you prepare and file for 2017, plan for 2018, and provide tax advice for business owners and individuals.

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We’re Celebrating 22 Years!

As we celebrate 22 years in business, we want to thank our wonderful clients who have helped grow our company into what it is today. We will continue to work hard to evolve The Barter Company and give you the best, most beneficial experience in the barter industry!

THANK YOU!

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What You Should Know About Taxes & Transactions

Barter is a widely accepted and proven marketing and business management tool. Barter transactions, like cash sales, are taxable and must be reported as income to the IRS. When you receive and spend trade dollars, there are income tax consequences just as though you were using cash.

The Barter Company is a legal third-party record-keeper on par with banks, credit card companies, and other such custodians of taxpayer financial records.

The Barter Company has a responsibility imposed by law to provide the Internal Revenue Service with information on the barter income of each of our clients for the calendar year. We do this on a Form 1099-B, “Proceeds from Broker and Barter Exchange Transactions.” You, as the taxpayer, are required by law to give The Barter Company your Taxpayer Identification Number (either your Employer Identification Number or your Social Security Number), which we need to prepare Form 1099-B. The IRS matches that number to either your business or personal name for accurate reporting.

Below are some of the most commonly asked questions regarding barter and taxes.

* Are there any tax advantages or disadvantages to barter? No. You should view barter income, as you would cash income. Barter is a marketing and business management tool, not a tax strategy or tool. Generally speaking, as with cash income, business-related barter purchases are deductible and, conversely, your barter income (sales) and business deductions (purchases) should be accounted for separately on your tax return.

* What constitutes income in barter transactions? Barter income accrues to you or your business when trade dollars are posted to your account, property or services are received, cash is received, or scrip is issued to you as part of a barter transaction.

* In what year are trade dollars taxable? The Internal Revenue Service has ruled that trade dollars earned from your barter sales should be included as income for the tax year in which they are credited to your account.

* How do I know how much barter income to include in my tax return? At year-end, The Barter Company will compute the proceeds from your barter sales and submit this information to the Internal Revenue on Form 1099-B. The Barter Company will also give you a copy of this form or some equivalent documentation. Be sure to include the barter income listed on Form 1099-B in your total income when filing your tax return.

If you have any questions, please give us a call at (770) 591-4343.

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