FREQUENTLY ASKED QUESTIONS
How will I know what is available to purchase with my trade dollars?
Your business will be assigned a personal trade broker who is always available to help you with trade purchases, present new trading opportunities, and to work with your business to help you save cash. There is a complete membership directory updated on a regular basis available on our web site. In addition we offer fax back directories, e-mail and monthly “statement stuffers”. At least once per year we have a Barter Expo that provides numerous opportunities to use your trade dollars.
What if I need to make a purchase before l've earned trade dollars in the system?
Just like a bank, we encourage businesses to apply for a barter line of credit. If you qualify, you can begin purchasing immediately.
What if everyone wants to trade for my products and services and I can’t find enough to buy?
Every member business is assigned a trade broker in our office. They do a complete spending analysis with you on your current purchasing as well as projections for your business in the future. You can spend your trade in many of the same ways you spend your cash. If your products or services are in high demand, we are happy to call you first and tell you who is looking to purchase from you and what their needs are. This way you can decide if you can handle more business and know ahead of time what the job entails. At any time you have a positive trade balance you may request to go on stand by.
Are there any Tax advantages to Barter?
Barter income should be viewed as you would your cash income. There are no inherent tax advantages or disadvantages just because you use barter exchange. Barter is a marketing tool, not a tax tool. Generally speaking, as with cash income, barter purchases that are business-related are deductible, and conversely, barter purchases that are made for personal use are not deductible. Naturally, your barter income (sales) and business deductions (purchases) should be accounted for separately on your tax return (please seek professional tax advice).
In what year are trade dollars taxable?
The IRS has ruled that trade dollars earned from your barter sales should be included in income for the tax year in which they are credited to your account.
Who decides what prices the seller will charge on barter?
Essentially, the market determines pricing just as it would cash. The seller is expected to trade their Goods & Services at their prevailing prices. By accepting or rejecting prices, New England Trade members are ultimately the determining authority in the pricing integrity. Business owners are educated shoppers. Barter is simply a mode of payment – just like a credit cards, checks, or cash.
What is a trade broker?
A Trade Broker assists you in marketing your goods and services to the other members of the trade exchange helping generate you new business. Your trade broker also assists you in purchasing goods and services available in the Trade Exchange.
How do I know how much barter income to include on my tax return?
At year end, New England Trade computes the proceeds from your barter sales and submits this information to IRS on Form 1099-B. Be sure to include your bartering income from Form 1099-B in your total income when filing your tax return. You are also mailed a copy of this form for your records.
What happens if I make a trade after your business hours?
We have a state of the art computerized 24-hour authorization system. This system allows you to complete trades at anytime.
Sales Tax on Trade Transactions
Sales tax, when applicable, is paid in cash to the seller. As the seller, you are responsible for collecting sales tax on New England Trade sales and remitting taxes to the US government in cash.