Does your business barter? Here are some facts you should know

In today’s economy, many small businesses are strapped for cash. They may find it advantageous to barter for goods and services instead of paying cash for them. But if your business engages in bartering, be aware that the fair market value of goods you receive is taxable income. And if you exchange services with another business, the transaction results in taxable income for both parties. Some businesses join barter clubs that facilitate barter exchanges. If you join such a club, you’ll be asked to provide your Social Security number or Employer Identification Number. You may receive a form that reports barter transactions. Contact us if you need assistance or would like more information.