GON Financial Services- Corporate Trade and Barter for Outdoor Advertising

In the United States, the sales a barter exchange makes are considered taxable revenue by the IRS and the gross amount of a barter exchange member's sales are reported to the IRS by the barter exchange via a 1099-B form. The requirement for barter exchanges to report members sales was enacted in the Tax Equity & Fair Responsibility Act of 1982. According to the IRS, "The fair market value of goods and services exchanged must be included in the income of both parties."^[6] Other countries do not have the reporting requirement that the U.S. does concerning proceeds from barter transactions. However, if you barter for goods and/or services, you are taxed not more or less than if it were a cash transaction. In other words, it is handled the same way as a cash transaction regarding taxation. If you bartered for a profit, you pay the appropriate tax, if you generated a loss in the transaction, you have a loss. Bartering for business is also taxed accordingly as business income or business expense.