In today’s economy, many small businesses are strapped for cash. They may find it beneficial to barter or trade for goods and services instead of paying cash for them. Bartering is the oldest form of trade and the internet has made it easier to engage with other businesses. But if your business gets involved in bartering, be aware that the fair market value of goods that you receive in bartering is taxable income. And if you exchange services with another business, the transaction results in taxable income for both parties. How it works Here are some examples: A computer consultant agrees to exchange services with an advertising agency. A plumber does repair work for a dentist in exchange for dental services. In these cases, both parties are taxed...
