Taxes

There is no tax advantage or disadvantage to barter transactions. They are treated just like cash when it comes to taxes.

In 1982, the United States Congress passed TEFRA, the Tax Equity Fiscal Responsibility Act. TEFRA recognizes trade exchanges, like Southern Barter Exchange, as third party record keepers of barter transactions and stipulates that all trade revenue earned is treated as income. It also allows that certain purchases made through the exchange are tax deductible. Thus, trade income and deductions are treated the same as cash, allowing for the same accounting as you already do.

Barter exchanges are required to file Form 1099-B for all member sales within the calendar year.

Examples of bartering and information on how to report the income are described in IRS Publication 525, Taxable and Nontaxable Income.

Sales Taxes:

Sales tax, where applicable, is paid in cash to the seller.

“I have been a member of Southern Barter for over 20 years. I have never had any problems with them and always found them willing to listen. Their brokers are professional, responsive and very helpful. Southern Barter has proven to be a solid and respectable company that I hardily endorse.”

Mark Abernathy Owner, Loca Luna & Red Door Restaurants
“As Barter members for the past 25 years, our lives have been greatly enriched by our relationship with Southern Barter. Our Camp Eye Care offices have utilized Barter services including everything from furniture and renovations to staff parties and Christmas bonuses. Personally, we have afforded extras such as vacations, braces, and even cars for our children that might otherwise not have been possible. In fact, we feel that we have basically raised our family on Southern Barter! We look forward to many more years with you!”

Cheryl Camp, Camp Eye Care
“I have been a member of Southern Barter Exchange for so long that I can’t really tell you how long it’s been. I have used barter for so many things- new signs, printing, catering, flowers, trips, etc., just about everything you can think of except your utility bills and I have hopes of that some day! The list is truly endless. Before I EVER spend cash I call Southern Barter Exchange because 9 out of 10 times they can find it for you. You never know until you ask.”

Connie Stover, je Stover Photography, Inc.
“This letter is my personal recommendation for Southern Barter Exchange. Murry’s Dinner Playhouse has been utilizing the services of Southern Barter for many years and have found them to be an excellent source for finding quality businesses in which to conduct business. We are able to find the services that we need while preserving needed capital.”

Ike Murry McEntire, Murry’s Dinner Playhouse
“Southern Barter brings in people that are looking for you and who may not have heard about you in any other way. I do feel that we added a least two to three years of word of mouth advertising by using Southern Barter. Time is money, and unless you don’t need the business or money, Southern Barter is a relationship in business that you should not be with out. I wish I had come up with the idea!”

Steve Lewandowski, The Blue Cake Company
“Like most small business owners, I wear many hats and don’t have a lot of time.Sometimes, my company needs items or services that I don’t shop for very often and this is when I call Southern Barter. I am amazed at all the things you can find on trade. You can tell one of the staff members what you are looking for and they will send you to another business owner who has what you need and wants your business. It’s like having your own purchasing agent on staff to tell you the best vendors to buy from. What a time saver!”

David D Cummings, Garage Door Fixer
“Southern Barter Exchange helped create revenue for my business during tough economic times. For nearly eight years, I have used many of the excellent barter merchants for things from computer services to new carpeting. Barter is great to use not only for services and merchandise, but also for the business networking. I would highly recommend putting Southern Barter Exchange and its professional staff to work for you.”

Peggy Goss Owner, Goss Camper Sales
“Our clinic has been a member of Southern Barter since 1989. When we first joined there were a little over 100 active businesses participating. At that time it wasn’t always easy to find businesses that you needed or wanted their products. Today with over 600 active businesses that is no longer a problem. We want more Barter business because there are a lot of other companies we want to purchase their products and services through Southern Barter. With all these companies as members if you can’t find a way to spend your Barter dollars then you’re just not looking. I would highly recommend any company to join Southern Barter.”

Dr. Steven Bennett, Arkansas Physical Medicine and Rehabilitation
“One of the benefits of Southern Barter is the wide range of industries that it covers. With that, it is great for business and personal use.”

Ryan Hamra, Blue Coast Burrito
“I have been a member of Southern Barter for over 20 years. I have never had any problems with them and always found them willing to listen. Their brokers are professional, responsive and very helpful. Southern Barter has proven to be a solid and respectable company that I hardily endorse.”

Mark Abernathy Owner, Loca Luna & Red Door Restaurants
“As Barter members for the past 25 years, our lives have been greatly enriched by our relationship with Southern Barter. Our Camp Eye Care offices have utilized Barter services including everything from furniture and renovations to staff parties and Christmas bonuses. Personally, we have afforded extras such as vacations, braces, and even cars for our children that might otherwise not have been possible. In fact, we feel that we have basically raised our family on Southern Barter! We look forward to many more years with you!”

Cheryl Camp, Camp Eye Care