Tax Tip of the Week!

[C.Rand]

 

Do you Barter?

Bartering has become more prevalent with today’s turbulent economy and businesses desiring to increase resources with decreased working capital.

The act of Bartering is when you exchange goods and/or services in lieu of of money. Even if you barter for someone else’s products and/ or services, you will need to report the fair market value of that product and/or service you received on your tax return.

Before you barter, you should familiarize yourself with the tax requirements, and not assume that because no money is exchanged there are no tax liabilities for bartered income. Barter dollars or trade dollars are identical to real dollars for tax reporting. You may be subject to liabilities with your income tax, self-employment tax, employment tax, and excise taxes or, on the other hand, your bartering activities may result in capital losses or gains.

In the event that you do engage in barter transactions know that, as wonderful as the offer may sound initially, as you consider your full financial picture, you may or may not find it beneficial for you to engage in bartering activities.

For help with your business accounting or tax related needs, contact the professionals at www.EnvisionTaxandAccounting.com

 

[Sue Copening]

 

<font size="4">This is a GREAT tip!

 

As someone who understands the ramifications I consider several options when deciding if I should barter...

 

1) Do I really need what I'm trading for?

2) What are the fees associated with the barter network (add those fees to your income tax rate to find your true cost of the barter).

3) Do the combined fees and tax rates add up to more, or less, than the savings I get from bartering, rather than paying cash?

 

Often, you can get a better deal paying cash... if you have gotten a great DEAL.

 

That's why the new DAILY DEELZ is so great: http://wwwConnectToDeals.com

 

They will SOON have BUSINESS TO BUSINESS deals, and even TRAVEL!  

 

You can often buy EXTRAS to use for business gifts.

 

You also get CASH back when you refer friends, friends of friends, and businesses.  Up to 20% back on the sales your friends make... and 4% for just referring a business!

 

Between their savings... and the cash back program (starting soon).. this can be way, WAY better than bartering!

 

http://www.ConnectToDeals.com</font>;