Archive for Barter and Taxes

How to Afford Summer Camp in a Recession

Originally posted on

How to Afford Summer Camp in a Recession

When you think of summer camp, the word “affordable” probably isn’t the first thing that comes to mind. And if you’re like other parents concerned about money in this awful economy, you might be wondering how to afford summer camp for your kids this summer. But don’t worry!

There are many things you can do to make the cost of camp more affordable and lesson the financial burden of giving your child a fantastic camp experience this year. Here are three top strategies you can use to save money at camp for your kids right now:

Early Bird Discounts

Early bird discounts are perhaps the best known and highly publicized of your available summer camp discounts. Here’s how Early Bird Discounts work.

Camps generally offer two sets of tuition rates: the regular price, and the Early Bird Price.

If you sign up for camp by a certain date, the Early Bird Price can save you money. For example, one camp in Los Angeles charges $5 per day less when you sign up for camp by March 1.

Since the price increases by $5 per day after March 1, it obviously it pays to sign up for camp sooner rather than later!



In bleak economic times (like this recession!), bartering can be one of the smartest money-saving strategies you can use. Summer camps want to save money just like you do, so this is a win-win strategy for you both.

Maybe you own an advertising agency and you have a few kids you’d like to send to camp. You might be able to provide advertising services to the camp in exchange for a fantastic camp experience for your kids.

Here’s another bartering concept that actually happened last year. A day camp in Los Angeles needed a nurse, and the nurse wanted to send her kids to camp. So the nurse ended up working at the camp and sent her kids in exchange.

The best way to start bartering is to consider what you might have to offer, and then pitch your idea to the camp director. He or she might be very open to your suggestion!

Sibling Discounts

Most camps offer sibling discounts, but they may not advertise the fact these discount are available. So, if you have more than one child attending camp, make sure you ask the camp director if they offer sibling discounts.

The discount will vary from camp to camp, but generally, the most common sibling discount we’ve seen is 5% off each additional camper beyond the first child.

Five percent may not sound like a lot, but given how much a high-quality summer camp experience costs these days, 5% off can save you a load of money!

Hopefully these three money-saving tips will help you save money off your camp tuition this year. Good luck!

4 Ways to Succesfully Barter for Real Estate

Originally posted by Sequoia on

4 Ways to Succesfully Barter for Real Estate

If you are short of cash, it is possible to barter for real estate. You may not qualify for a mortgage that covers the purchase price, or you may not have enough cash for the down payment. In these scenarios, you may be able to barter for the real estate you want to purchase.

Step 1: Determine What Part of Deal to Barter

There are many different parts of the transaction that you will be able to barter including the down payment or a discount on price, commissions or closing costs. You can barter for part or all of the real estate purchase.


Step2: Determine What to Offer

For bartering to be successful, you must offer something of value that the other party will accept in exchange. The most common items used in barter are cars, boats, services, goods or other properties.

Step 3: Determine Value

Both parties must agree to the value of the item that is being used in the barter. Value can be determined by appraisals, sticker cost or comparables. The value will be used to determine the monetary value offset in the real estate transaction.

Step 4: Exchange

The attorney or title agent handling the closing will need to account for the value of the barter in the settlement statement. He or she will need to verify that the items to be bartered are exchanged.

Is Your Business Going Through a Cash Crunch? Consider Barter!

Originally posted by Shawna on

Is Your Business Going Through a Cash Crunch? Consider Barter!

There is a new article at A Touch of Business well-worth reading during these still trying economic times, business to business barter exchanges

This new article explains how to get around in the world of bartering including what you need to know about how taxes work, how to keep track of paperwork, how to ‘price’ barter exchanges along with many more tips, hints, guidelines, and packed full of resources.


Although bartering has been around for hundreds of years, it has regained new growth as a way to get what you need without spending cash—cash you may not have at the moment.

Do you need a new printer? How about computer repair? Signage? Advertising media? Why not learn the ropes of how to do business-to-business bartering and save!

Read the full new article at Business-to-Business Barter Exchanges.

Business Finance

Originally posted by John Tomy on

Business Finance -Tipse
More residential absolute acreage investors are exploring bartering absolute acreage and business accommodation alternatives as a aftereffect of the added anarchic investment ambiance for residential financing. In these affairs -to-be bartering acreage owners, business investors and business owners should brainwash themselves about choices for the business befalling costs and bartering accommodation altitude that currently prevails throughout the United States.

Environmental requirements for business accounts will be a circuitous affair for abundant business investments. Environmental issues complex in a business accommodation will primarily depend aloft the bartering lender as able-bodied as the blazon of business. Added all-encompassing requirements can appulse both the amount and timing for a bartering mortgage loan.


Tax allotment and banking statements for a business accommodation are acceptable to be a affair for all bartering borrowers. Whereas residential mortgage costs is acceptable to absorb alone claimed tax returns, a lot of business costs will cover a analysis of business tax allotment as well. Business banking statements and claimed banking statements will be appropriate for assertive kinds of business befalling costs and bartering absolute acreage financing.

Secondary costs will generally be a agency of accepting adapted bartering loans. The use of agent costs or accessory costs is a advisable business costs action to abate basic requirements for the borrower. Accessory costs will not be accustomed by all bartering lenders.

An abrupt claim for abounding bartering loans involves sourcing and condiment of funds. When purchasing a business, some lenders will crave that borrowers certificate area the down transaction is advancing from and how continued the funds accept been in that area . If a borrower cannot abundantly accommodate this documentation, the best of bartering lenders will be added restricted.

Bartering Resources….

Posted on December 14th, 2009
Original posted by: Alexander Fowler


Here are some useful resources for those looking to get started with barter.

1. Barter Agreement

When we barter through Geektime, we ALWAYS use a barter agreement. You can download the sample barter agreement (in PDF form) that we use from this site. It’s a simple one page template we found on the Internet, but it spells out who is bartering, what is being bartered and creates an official record of your trade.

2. Barter Sites

There are a number of free barter sites on the Internet, in addition to professionally managed barter clubs or barter circles. Keep in mind that the professionally managed clubs charge a fee, but handle all of the administrative paperwork AND open up a larger network of potential partners. Here’s a list of some of the freebies, (try searching for your barter clubs or barter circles in your city or region for a list of the barter networks):

  • Craig’s List – the online classified giant has a free barter section for each region in which it operates.
  • BarterQuest – a well designed interface designed to match up partners based on “wants” and “haves”. Easy to use and search.
  • U-Exchange – a no frills bulletin board system with filtering and search capabilities.
  • FavorPals - very similar to U-Exchange, with time and date stamps to indicate freshness.

3. Tax Information

Don’t forget the IRS. They want to be paid on any and all compensation you receive, including bartered goods and services. Topic 420 on the IRS website covers bartering income from their perspective.

If you have any information you’d like to add, please comment. Happy Bartering!

Bartering Instead of Going Bust.


Posted on November 28th, 2009

Bartering is a system of trade that predates the use of money, whereby you trade your skills, services, or products for something you want from someone else.

About 25 years ago, during a recession in the early 1980s, a lot of bartering clubs sprang up, so people who were out-of-work or having financial problems could increase the funds available to them. Once people joined the group, they could turn their skills, services or products into points; then others could employ them or purchase their products using the points they had accumulated in their own accounts. And if no one wanted to use one’s skills, services, or products, they would accumulate negative points up to a cap, until they found a way for others to want what they offered. Through this system, these clubs sought to achieve a fair balance between what people were getting and giving.

As an organizer, think of running a barter service as a new business, which can be very successful if you have the skills needed to run the business, such as a good head for figures, an attention to detail for everyday operations, and good communication, marketing, and sales skills to promote the service. If you simply want to participate in bartering, you might do this directly by offering an exchange with your own contacts or try posting whatever you are offering on one of the social media sites like LinkedIn.

To determine what to list, think about what you have done in the past and list what you can offer that might be of interest to someone else. If you have a lot to offer, divide up your skills, services, or products by category and post them separately.

Barter and Taxes

We recognized that a lot of people are very concerned about bartering and taxes. They even consider barter as illegal. But it isn’t. There are some parts of bartering, especially in cases of trading with services, where small businesses have to mention their exchanges in their tax computation. we are actually no expert in terms of taxes either. who actually is? But we did find some helpful information of the IRS, where you can print out a form to make sure you follow the rules of Uncle Sam.

Another great source of information is this video by CNN, where they describe bartering and different tax implications.


Do You Need to Report a Barter Exchange?

original post by Sandra A. Parks

Bartering is the trading of one product or service for another. Usually there is no exchange of cash. Barter may take place on an informal one-on-one basis between individuals and businesses, or it can take place on a third party basis through a modern barter exchange company.

Bartering is the most ancient form of commerce. While our ancestors may have exchanged eggs for corn, today you can barter computer services for auto repair.

Another example of a one-on-one, non-barter exchange transaction is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of the goods and services exchanged must be reported as income by both parties.

Here are a few things you should know about bartering:

• Barter Exchange A barter exchange functions primarily as the organizer of a marketplace where members buy and sell products and services among themselves. Whether this activity operates out of a physical office or is internet based, a barter exchange is generally required to issue Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, annually to their clients or members and to the IRS.

• Barter Income Barter dollars or trade dollars are identical to real dollars for tax reporting. If you conduct any direct barter – barter for another’s products or services – you will have to report the fair market value of the products or services you received on your tax return.

• Taxes Income from bartering is taxable in the year it is performed. You may be subject to liabilities for income tax, self-employment tax, employment tax, or excise tax. Your barter activities may result in ordinary business income, capital gains or capital losses, or you may have a nondeductible personal loss.

• Reporting The rules for reporting barter transactions may vary depending on which form of bartering takes place. Generally, you report this type of business income on Form 1040, Schedule C Profit or Loss from Business, or other business returns such as Form 1065 for Partnerships, Form 1120 for Corporations, or Form 1120-S for Small Business Corporations.

For more information please see or call 972.569.7938

Some Musings on Barter and Taxes

International Revenue Service, US Department of the Treasuries:

Barter and Taxes

As with any discussion about taxes, it is always prudent to start by stating what you don’t know. I am not a tax expert and have no special expertise in the taxation of barter transactions. So please do not read this blog and accept it as advice. Rather, on a subject where there appears to be significant confusion, I am attempting to communicate my general understanding of the tax implications of bartering and seeking to initiate a dialogue.

First, it can be unequivocally stated that under the U.S. tax law there are tax implications when you trade. There may be reporting requirements and a completed trade can give rise to tax liabilities. This being said, the tax liabilities attendant to bartering will vary and can be less onerous than for a “buy and sell” transaction depending on a number of factors, including where you are resident and the types of items that are traded (goods, services, or real estate). In short, there may be real tax advantages to bartering.

Reporting requirements can apply both to the trading partners and to the trading platform (BarterQuest) that facilitates an electronic trade. While there are existing regulations, my common sense leads me to believe that the “rules of engagement” will be further refined as electronic barter matures. An analogy is eBay, where a ruling was issued only recently by the U.S. tax authorities that clarified which auction transactions require reporting by eBay. My interpretation is that, in essence, reporting by eBay was limited by the ruling to more material transactions or to recurrent transactions that suggest that a seller is engaged in a business.

While tax liabilities are the theoretical consequence of bartering, in a model where there is always, by definition, a fair exchange and no money actually changes hands, there are practical difficulties related to the determination of cost basis and market value. Has anyone made a profit? Again, I believe that the “rules of engagement” will evolve.

We at BarterQuest would like to take this opportunity to call upon our industry and other interested groups to work together toward a greater rationalization of the tax laws for barter transactions. This effort has special importance with respect to the application of such laws to routine transactions between individual consumers. These barter transactions not only may be critical to people who are looking for ways to save money or do not have the money to otherwise get what they need, but, in the aggregate, constitute a “green” machine that can have a material impact on the preservation of our environment.