Here are answers to many of the most commonly asked questions about barter exchange.
Q. Can an individual trade?
A. Normally, individuals do not have products or services to continually put into trade. Business owners and professionals understand the fixed costs of doing business and the advantage of investing in trade. Each trader buys at their own wholesale, adds a margin or profit, and trades for retail trade dollars. If they can't make the investment, they don't trade.
Q. Do I need to pay taxes on my Tradebank sales?
A. Yes. Sales made via Tradebank are subject to the same taxes as cash sales. Tradebank recommends that you contact a qualified tax consultant for further advice.
Q. How does the IRS view purchases and sales via Tradebank?
A. Sales made through Tradebank are reported to the IRS, as required by law (U.S. $1.00 = 1.00 T$). Members may deduct from their taxes, purchases for business related expenses that are made with Tradebank dollars. Consult a qualified tax consultant for advice and for tax-deductible expenses allowable by law.
Q. How does the IRS view trade exchanges like Tradebank?
A. The IRS classifies trade networks as third-party record keepers. Therefore, Tradebank has the same reporting requirements as banks and stock exchanges. Each year, members receive a Form 1099-B that reports their Tradebank sales (U.S. $1.00 = 1.00 T$). A copy of the client's Form 1099-B is also sent to the IRS, as required by law.
Q. How will other clients know what I’m selling?
A. Once you've listed your products and services with Tradebank, other Tradebank members will see what you're selling when they search for the products and services they want, or their trade brokers will inform them when they've expressed an interest for your particular product or service.
Q. When can I sell my products or services and when can I buy?
A. You can sell your products and services as soon as you become a Tradebank member and list items for sale. You can begin buying as soon as you have sufficient Tradebank Dollars (T$) to pay for the products and services you want to acquire or, in special circumstances have been granted a line of credit. Your T$balance grows via sales to Tradebank clients.
Q. Will I pay higher prices using T$than with cash?
A. We encourage you to comparison shop on the Tradebank Network. Choose a seller that provides the greatest value for your T$. Since Tradebank Dollars (T$) are valued at U.S. $1, trade prices should be comparable to cash prices. If you feel that a product or service is priced too high, you can negotiate with the seller or buy from another client - it's your choice.