FAQs about Americas Barter Exchange

Is Bartering Legal?
Yes! We are officially recognized under the "Tax Equity & Fiscal Responsibility Act" of 1982 in which companies like ours are identified as third-party record keepers. This is the same act that covers banks, securities brokers, attorneys, and accountants.
 
What about taxes?
There are no tax advantages or disadvantages to barter. Trading should be considered a marketing tool, not a tax tool.
  • Trade dollars are treated exactly the same as cash for tax purposes. For example, when your business sells for trade dollars, those dollars become part of your business income in the tax year - just like cash.
  • If your business spends trade dollars on business-related items, those expenses should be offset against income - just like cash. (Exchange fees are tax deductible.)
  • If you or your employees spend trade dollars on personal items, those dollars are part of your taxable income - just like cash.
 
How do I include Barter Transactions on my tax return?
The U.S. government considers barter exchanges to be legal third-party record keepers, similar to banks, brokerages and other firms that deal with taxpayer records. Barter exchanges are required to complete and submit Form 1099-B, "Proceeds from Broker and Barter Exchange Transactions," for each of their members and the IRS. In order for the exchange to complete this form, you just supply your taxpayer identification number. You are also mailed a copy of this form for your records.
 
Treat barter just as you would any other business activity. Keep good records, consult a qualified CPA, and if you have any questions there are numerous online resources that provide additional information.

What about Sales Tax?
The same rules that apply to cash sales applies to Barter transactions.  The seller is responsible to collect and submit taxes on bartered good, the same as cash sales.  Buyers are required to pay any applicable sales tax in cash and not ABE barter dollars.
 
What does Americas Barter Exchange actually do?
Americas Barter Exchange is a third-party record keeper, providing monthly statements to member clients, which reflect their purchases, sales, fees, and current barter balance. We also provide end-of-year tax statements for you to incorporate into your tax returns.
 
Who decides how much I will charge when I’m the Seller?
The seller is expected to trade their goods and services at their full, fair prevailing prices. By accepting or rejecting prices, Americas Barter Exchange members are ultimately the determining authority in the pricing integrity. Americas Barter Exchange Brokers keep in constant contact with Members to monitor fair trading policies.

Can I charge part cash and part trade?
Americas Barter Exchange is committed to 100% barter transactions so that all members of the exchange benefit. In some instances when parts need to be ordered, a cash component might be essential. In that case, Americas Barter Exchange must approve the transaction in advance.

Can I use barter dollars to pay for tips and gratuities?
No.  Tips and gratuities are to be paid in cash and not ABE barter dollars.

How do I get started with Americas Barter Exchange?
Simply go to the sign-up page and complete the form.  A member of our staff will contact you for any additional information needed.