Barter income is treated the same as cash income. There is no tax advantages or disadvantages to bartering. Trading should be considered a marketing tool, not a tax tool. TBC provides your company with a 1099B at the end of the year for all of the sales you have consummated with TBC. As with cash income, trading purchases that are normally tax deductible as business expenses, are also tax deductible when purchased on trade.
Frequently Asked Questions
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The initial investment to join The Barter Company’s trade network of more than 2,500 clients is $395. There will be a cash transaction fee of 7.5% on each transaction when you buy and sell and a monthly accounting fee of $15 cash and $15 barter. We do not charge an annual fee and if you don’t earn $1,000 in barter dollars within the first year, we’ll refund you the initial investment of $395.
Prices quoted to barter clients are the same as prices quoted to cash paying customers. Business owners are educated shoppers. Barter is simply a mode of payment-just like a credit card or cash. If your price is too high, clients simply won’t buy.
TBC participates in The BANC (Barter Association National Currency) U.C. (Universal Currency) and other worldwide reciprocal trade relationships with other exchanges offering a multitude of additional barter opportunities. We fulfill our clients travel requests via our reciprocal network. We also help businesses looking to open new markets by utilizing the distribution channels available to our local clients. This opens the doors to 100,000 businesses nationwide.
In most cases we will issue a line of credit. You must fill out a credit line extension form. Based on your ability to repay will determine the amount of credit issued.
When you make a sale it is your responsibility to call in to get an authorization. Here are three different ways: call the office, call the 24-hour authorization hotline, authorize on the website and/or authorize on the mobile app available for iPhone and Droid users. At this point, the trade dollars are transferred into your account.
It is The Barter Company’s policy to provide clients with fair market pricing and we strive to do everything 100% trade. However, in some situations, this might not be possible. If you are unsure if your company’s products and/or services can be traded at 100%, please discuss with your trade coordinator before initiating any transactions.