Help needed

Does anybody have experience doing barter deals?

I'm interested in brokering barter deals. I'm not interested in running a barter exchange...yet! For now, just doing one deal and then moving on to the next.

Questions: Who is responsible for reporting these deals to IRS (both sides on their own or the broker)?

What type of "deal paperwork" is required?

What's a scrip?

Is anybody here willing to share a few things about their barter experience that might be enlightening?

Thank you.

Marc

While I don't have any experience, yet, I can tell you what I know.

I believe that each side is responsible for reporting both what they received in compensation and any "business expenses" involved. The broker would also be responsible for reporting his commission or "fair market value" of whatever he received as payment. But, you would probably have to talk to a business accountant about the specifics.

I know Jay Abraham has discussed barter in various of his materials (was just listening to a "Marketing Wizard's Edge" tape on it today), but I don't know if he ever got into the tax-reporting details. (Would be surprised if he did.) There is a book called "The Barter Bible" by Derkas that I've been meaning to check out and you might want to, as well.

As for "scrip", that usually refers to paper currency that (in this case) a business would print up with their name and/or logo on it. It could be done in the form of $X bills (like "Browser Bucks" and the like) or a single document produced for a certain amount, which is more like what your prospective client would use in a barter deal. Just like with any legal tender, it basically is used as evidence that the holder or bearer is entitled to receive something (e.g., $10,000 worth of furniture or advertising or legal services, etc.).

I hope this is at least somewhat helpful.

Chris

> Does anybody have experience doing barter
> deals?

> I'm interested in brokering barter deals.
> I'm not interested in running a barter
> exchange...yet! For now, just doing one deal
> and then moving on to the next.

> Questions: Who is responsible for reporting
> these deals to IRS (both sides on their own
> or the broker)?

> What type of "deal paperwork" is
> required?

> What's a scrip?

> Is anybody here willing to share a few
> things about their barter experience that
> might be enlightening?

> Thank you.

> Marc

Chris,

Thanks for shedding some light on a topic I find intriguing but with scant information available.

I will definitely check out "The Barter Bible".

Best regards,

Marc

> Chris,

> Thanks for shedding some light on a topic I
> find intriguing but with scant information
> available.

> I will definitely check out "The Barter
> Bible".

> Best regards,

> Marc

You might like to check with the government printing office. They have very inexpensive or free information on this topic.

There are also barter guidelines available from the IRS. Be forewarned, barter isn't quite as simple as you probably think it is now, from a legal and tax standpoint, on either side of the equation.

A good regional library should have copies of the tax codes and possibly other information on bartering.

Hope this helps.

Sandi




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