Reporting barter transactions
Abstract: Bartering is one of the most ancient forms of commerce and involves the trading of a service or product for another. Typically, no cash is exchanged in the transaction, and business owners can save cash by bartering to get the products and services they need. In any case, the fair market value of the goods and services exchanged must be reported as taxable income by both parties. This article looks at the procedures involved, whether the transaction takes place informally or through a barter exchange company.