What is bartering?
Bartering is the oldest form of commerce. For centuries, people and businesses have traded products or services back and forth as a way to conserve cash.
Is this legal?
Yes. Modern barter exchanges are regulated by the IRS and recognized as a viable form of commerce under the TEFRA (Tax Equity and Fiscal Responsibility Act) of 1982, signed by President Reagan. We act as third-party record keepers, making sure every transaction done through our group is accounted for and recorded. Every member must fill out a W-9 or similar application that includes basic company information and tax ID numbers; at the end of the year, we send 1099-B forms to each member. If the member is a corporation, they get one aggregate 1099-B totaling all sales, while non-corporate members get a 1099-B for each transaction throughout the year and a statement total. We report all transactions to the IRS, meaning taxes will be owed on all sales, just as if they were cash. This way, all members comply with the IRS and there's no risk of penalty. For more information, go to USEFUL LINKS on the right of the page and choose the links ending in 'IRS' to go to the IRS pages on bartering.
Why barter?
If we don’t use cash, what do we use?
Every member can use trade dollars instead of cash to purchase goods or services from other members. Interest-free lines of credit are also available.
Do trade dollars have any value outside the network?
No, trade dollars have no cash value. They're simply a way to place a value on the goods and services being exchanged between members.
Are there any tax advantages to bartering?
There are neither tax advantages nor disadvantages to bartering. Per the IRS, each trade dollar is equivalent to 1 US dollar and must be reported. You'll pay the same amount in income tax for $500 in trade dollars as you would for $500 in cash. Consult your tax adviser.
How do members save cash?
I don’t see any members we could use, why join?
Why not just trade directly with other businesses?
Significant benefits of trading within the network include saving time and reducing risk. To trade directly, you must find a company that needs your products or services, which takes time that would be better used increasing business. There's also risk in trading directly – it's possible the other company won't follow through. Trading in the network means you don’t have to worry if the company taking your trade dollars needs your services, and you aren't waiting for anything in return for products or services already rendered.
What are the costs involved?
Please see our Membership Agreement. All fees are tax deductible as a business expense, provided you're purchasing products or services for business and not personal needs. Consult your tax adviser.
Will this offset all cash transactions?
Do I have control of trades?
Can I use my trade dollars for personal expenses?
Premier Barter helps your business increase its cash-flow by converting your unsold inventory, excess capacity or unbilled hours into Barter Dollars. Your business will be introduced to an entirely new group of potential customers. With access to a growing network through Premier Barter, your sales will increase.
Get New Business Revenue, Increase Cash-Flow , Increase Market Share and Referrals and Use Barter Instead of Cash.
