Four Facts About Bartering

In today’s economy, small business owners sometimes look to the oldest form of commerce – the exchange of goods and services, or bartering. The IRS wants to remind small business owners that the fair market value of property or services received through barter is taxable income. Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties.
Here are four facts about bartering that the IRS wants small business owners to be aware of:

1. Barter Exchange A barter exchange functions primarily as the organizer of a marketplace where members buy and sell products and services among themselves. Whether this activity operates out of a physical office or is internet based, a barter exchange is generally required to issue Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, annually to their clients or members and to the IRS.
2. Barter Income Barter dollars or trade dollars are identical to real dollars for tax reporting. If you conduct any direct barter - barter for another’s products or services - you will have to report the fair market value of the products or services you received on your tax return.
3. Taxes Income from bartering is taxable in the year it is performed. Bartering may result in liabilities for income tax, self-employment tax, employment tax, or excise tax. Your barter activities may result in ordinary business income, capital gains or capital losses, or you may have a nondeductible personal loss.
4. Reporting The rules for reporting barter transactions may vary depending on which form of bartering takes place. Generally, you report this type of business income on Form 1040, Schedule C Profit or Loss from Business, or other business returns such as Form 1065 for Partnerships, Form 1120 for Corporations, or Form 1120-S for Small Business Corporations.

For More Information

See The Bartering Tax Center In The Business Section At http://www.irs.gov

Press Release It's All About the Barter, Baby -- Major Company Turns to Barter

From the PR Web Press Release Newswire -

TheRetroBaby.com has Announced the Launch of their Retro Barter Program

It looks like TheRetroBaby.com is at it again. This time, they are going real old school style and revitalizing the age old concept of exchanging goods without involving money.

For as long as man/woman has walked this earth, the principle of barter has been used and perhaps even preferred to the monetary system. But can it work in the 21st Century in places around the world where an exchange program is not a necessity? It seems so. Take the now well-known Internet blogger, Kyle MacDonald who started his barter experiment with a single red paperclip. Per his website, it took him 14 trades to get a new home. That's a pretty sweet deal being that Kyle didn't have to lay out a single penny! His experiment did get a lot of media coverage and perhaps accounted for the quality of trades.

On a smaller and less visible scale, bartering just might work for online websites who offer unique products and services. For example, http://www.theretrobaby.com offers a wide selection of very cool newborn, infant,and toddler baby clothes. Their clothing line is trendy yet not market saturated and cannot be found in local malls or large retail chains. Thus, they potentially have a product that is perfect for trade.

So how does a barter program work on a site such as TheRetrobaby.com? The first plus for this site is that
they do not have a limited target audience. Moms, dads, grandparents, friends, co-workers, and just about
everyone knows a person who is having a baby or already has children. TheRetroBaby.com is still an online
retailer selling a product. They just added an interesting twist.

On the main page of the website, they have included a link that says, "Wanna Barter, Baby?". By clicking on
the link, the web surfer is given the opportunity to review what items and services are eligible for trade.
This company is taking the lead in a fun and consumer driven concept.

Patricia Bachkoff
Online Journalist

###

Contact Information
Patricia Bachkoff
http://www.theretrobaby.com/
954-234-8903

You can trade and barter in your business the same way RetroBaby does - contact Terry Brandfass of ITEX to discuss how to get started quickly and easily! Follow ITEX on Facebook and Twitter to keep up to date on the barter business and get updates on items up for barter!

NEW Items and Services on ITEX - Connect, Trade, SAVE!

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Your Health Interest Articles

Arcadia Spinal Health Center

September 2010 Issue

Health Interest Articles Published By Dr. Gregg Friedman of Arcadia Spinal Health Center



Dear ITEX Trading Partners…
Here are your selected health interest articles:

No Respect!
Your cervical spine does an incredible job everyday - do you give yours the respect it deserves? more »
Crimp on Cramps?
Could chiropractic actually help with your killer cramps? more »

What Your Gums Are Saying
Did you know your gums are an early-warning system for your overall health? Learn more. more »
Magnificent Magnesium
Calcium and magnesium are an important team, but they have to work together! more »
Avoid Holiday Stress
Making plans and setting expectations now will help you avoid end-of-the year stress. more »
Share Arcadia Spinal Health Center's health interest articles with friends and family. Forward this email or click "Email a Friend" in the footer of each article.
Health and Happiness
Dr. Gregg Friedman

Arcadia Spinal Health Center

Visit Our Website
For appointments call (480) 947-8381



How To “Buy It” With ITEX On The ITEX Marketplace
· Go the web site http://www.itex.com/

· Click Sign in
· Enter your username and password, remember that these will be all one word and in lowercase.
· You will be on you’re My Account page and should see your logo and contact information in the center of the page.


· Click on Search tab on the toolbar which will take you to The Marketplace.

· Go to the Listings area, click on Listings and you will see Featured Listings and Recent Listings.
· If you find a listing you want to buy, click the Buy it with ITEX button. You will see an ITEX Check with your information. If the information is correct, Enter Your Valid E-Mail Address in the box, and click Buy it.
· In order for the seller to approve your purchase, you must have a valid e-mail address on file with ITEX.
We strongly recommend sending a return receipt e-mail with your shipping info immediately after sending your payment so that your Trading Partner will have all the needed information to immediately ship your order. If you need further assistance, please contact your local broker, 602.296.1018.



The Holidays Are Sneaking Up On You…we have a lot of great gift items available to take the stress out of the season...don’t delay…start your holiday shopping early…and then relax and enjoy!

ITEX Arizona DISCLOSURE: Buyers are to evaluate the merits, risks and bear economic responsibility of their purchase and agree to indemnify and hold harmless ITEX Arizona. The information contained herein is on behalf of the ITEX member seller. ITEX Arizona has no right to sell, deliver or negotiate for the seller and is not responsible for the accuracy, reliability or integrity of any detail in this listing. PLEASE BE AWARE THAT BOTH ITEX ARIZONA & ITEX CORPORATE HAVE AN ESCROW ACCOUNT TO ASSIST YOU WITH NATIONAL PURCHASES TO ENSURE YOUR TRANSACTION. Thank You.

ITEX Arizona
602-296-1018 phone
602-953-6001 fax
www.ITEX.com
bxi@cox.net

Barter and Today’s Economic World

Barter and Today’s Economic World

Barter is the process of exchanging products, goods or services, for other products, goods or services. It is a simple method of transaction where little to no money is used. In today’s world, it exists parallel to the monetary system.


Today with barter exchanges being set up, barter has become a much more systematic and structured system of commerce. Modern barter and trade has advanced considerably to become an effective method of escalating sales, saving cash and making use of excess or perishable production capacity for businesses around the world. A trade or barter exchange provides a trading platform and bookkeeping system for its members or clients to provide barter opportunities.

The member companies buy and sell products and services to each other using an internal currency known as barter or trade dollars (or trade credits of the local currency). Businesses in barter earn trade credits (instead of cash) that are deposited into their account. They then have the ability to purchase goods and services from other members using their trade credits. As this is multilateral trade, they are not obligated to purchase from who they sold to, and vice-versa.

Here are some facts and figures which help explain the increasing importance of barter in today’s commercial world:

• The International Reciprocal Trade Association (IRTA) estimates that 30 percent of the world’s business is done on a barter basis.

• Offset and non-cash trade grows at a rate of 8% per annum regardless of economic difficulties according to a World Bank report in 2007.

• According to the 2004 Annual Report of the National Association of Trade Exchanges, approximately 65% of all New York Stock Exchange-listed companies engage in some form of excess capacity exchange.

• 20% – 25% of world trade is done in some form of counter-trade.

• The National Association of Trade Exchanges, The International Journal of Hospitality Management and the Michigan State University together claim that approximately 70% of all Fortune 500 companies engage in some form of barter.

• In Switzerland, one in every five businesses uses a barter network called WIR Bank to increase commerce and profits. WIR is one of the oldest barter organizations of the world, and has been in operation for over 75 years.

• Virtually all media companies, including newspapers, radio stations, magazines, TV stations, billboard companies, etc. engage in barter at some time or another.

• According to the International Reciprocal Trade Association, approximately 400,000 businesses engage in formalized barter in the United States.

Given how prevalent barter is in the world’s economy, it really becomes clear that it makes sense to use what you have to get what you need, rather than simply relying on cash for everything.

Submitted by Terry Brandfass of Itex AZ

Got kids? Try bartering…

I’ve been bartering for as long as I can remember. As a child, I traded one treasure for another with my siblings. As a mother of large brood of children, I found ways to barter for clothing. For several years I had access to a large amount of quality used books (I helped my husband with a used bookstore!) and I found an ingenious way of bartering used books with another mother for her Baby Lulu and hanna Andersson clothing. My sixth child was my best dressed baby as a result. In the ensuing years I have bartered a box of health and beauty items for a goat, books for books, homeschooling curriculum for other curriculum… I love bartering! I’ve been trading books on PaperBackSwap for years and used to set up “sister swaps” with my sisters, trading books, magazines, and clothing.

So imagine my delight when I came across this website, ThredUp, for trading used children’s clothing:

http://www.thredup.com/Kenyon18708

I was skeptical at first~ How could this work? The concept is fairly simple. You pack a medium Flat Rate priority box with your child’s outgrown clothing and post it. Describe it well~ I think my boxes are picked fairly quickly because I was used to selling on ebay and knew how to describe something. So, you fill a box with, say, boy’s 5T, post it, and wait. Someone chooses your box and pays the fee of $13. You generate a label from your computer and either have the post office pick up the box or take it into the post office yourself. So far, there is no expense to you at all and now you can pick a box! You look through available boxes in the sizes you need and pick a box. Then you pay the $13 fee to have it mailed to you. With the little sizes, like baby clothes, you might get 18-20 items in a box. For the larger sizes, which is what I need for my youngest two children (ages 7 and 10) I’ve been getting 7-8 items in a box. When one of those items is an expensive Mini Boden skirt or a hanna Andersson top, then the $13 is well worth it. I probably wouldn’t want to pay $13 for 13 Gerber onesies or a single Faded Glory jacket, but it might be worth that for someone else, especially if it is a hard-to-find size or style. (for instance, one person has a lovely $60 girl’s fancy dress listed and if you were looking for a flower-girl dress or something for your daughter to wear to a father-daughter banquet, the $13 fee would be well worth it)

What is neat about this site is that you can earn credits if you are posting children’s clothing in one of the sizes that are most in demand. I’ve earned as much as $6 credit towards my next choice this way. In fact, I am keeping a carefully guarded secret~ I have bought clothing specifically to include in a box! Why would I do such a thing? Because I have access to thrift stores that run specials like $5 a bag or 25-cents an item, it can be cost-effective for me to buy clothes to post on ThredUp. But this is an important point~ I will only buy high-quality stuff~ and only when a quarter or less. I have filled a box with Gymboree, Gap, and Land’s End items that were not actually ever worn by my children. But I paid 25-cents for each item, added 10-12 items to a box, posted it, and gotten $6 credit for my $2.75 investment! I just grab the good stuff while I am searching for 25-cents deals for my own children! This is my secret strategy to having traded over 15 boxes in my first month’s membership on this site. So, even if you don’t have drawers full of clothing to trade, if you have the opportunity to pick up quality children’s clothing at “bag sales” or consignment store quarter sales, you might want to think about doing the same thing.

I’m kind of addicted now. The rush I get when I open up a box like this one yesterday, makes me want to do it again.

In this box were two Land’s End swimsuits, a blue hanna Andersson top, pink hanna Andersson cap, darling little capri pants with a butterfly on, and several other cute shirts. Even if only half of them fit Abby, the blue shirt and two swimsuits are worth it to me. You can bet I added this person to my “favorite sender” on ThredUp and will keep an eye on other boxes she posts.

So, if you’ve got kids (or grandkids) who are outgrowing clothing faster than you can buy it, check out this website. Not only is it a thrifty way to get clothes, it is fun!

- submitted by Terry Brandfass of ITEX AZ

5 Tips To Succeed In Bartering

No, this article is not going to teach you how to exchange your goats with your neighbors chickens, although when you consider today’s economics that may not be such a bad idea. This is a simple guide for those who are rediscovering the value of barter which is making a comeback because of the economic benefits that people receive.

Bartering, as many of us know, is the act of exchanging goods or services without using money. Modern day bartering can now be done through the Internet, via online barter organizations which act as trading portals. People who want the ease and functionality of a website can join a number of different barter organizations, find good deals, and get the deal done using trade dollars…an online currency that determines the value of the item or service being traded, making it easier for the trading partners (or barter organization members) to decide on the things they would want to barter.

If you want to give online bartering a try, here are some tips that can help you achieve success in this lucrative past time:

1. Do Your Research:
Choose a barter club that has an online presence, and has a diverse membership. This will give you many opportunities to continually find items you are looking for. It will also allow you to reach more people who may be interested in the products and services you are offering for barter.

2. Check The Barter Club's Terms And Conditions:
Most of the online barter clubs have their terms of use published on their websites. Take the time to read prior to signing up and paying (if any) the membership fees. Usually the site will charge either a one-time fee, an annual fee, or a monthly fee. Most will charge a commission fee for every trade completed.

3. Be Specific With Your Offers:
When posting the products and services you are offering, include as much details as possible. For example, if you are offering tutorial services, indicate how many hours you would be willing to put in to exchange. The more details you provide, the more interest you will create among other members.

4. Be Safe:
Do not readily give out your financial information to anyone who contacts you through any barter networking sites. Although most sites have ways to screen their members, they also have a waiver on their terms of use, in case you fall victim to an online transaction that constitutes a scam. It is really your responsibility to conduct due diligence on your potential trading partners before you enter any deal.

5. Get Legal Advice:
For high value transactions, like home swapping, seek some legal advice to make sure that the transaction is conducted legally. Have a contract written, before completing the exchange. This protects your interests, and makes sure that both parties will benefit from the transaction.

Heres an extra tip think out of the box! Check things that are just lying around your home or your office, and put them to better use by posting them for trade on the barter club. Who knows, your trash may be someone elses treasure, and there may be a good deal coming your way!

Submitted by Terry Brandfass of ITEX-AZ

Entrepreneurial Survival Tips

If you are having a hard time lately with your business, you are not alone. However, if you also happen to be frugal and inclined to wear many hats, you have a better chance of surviving when times are tough. Considering the foolishness of forecasting a recovery before it arrives, we believe it makes sense to be as prepared as possible for the “long haul” and are offering a few ENTREPRENEURIAL SURVIVAL TIPS.

One of the essential elements for survival is keeping your company as lean as possible. Just as a famine would force you to ration the amount of food you ate in order to survive, so should a sluggish economy force you to feed your company what it needs to survive. Keeping your business lean and fit will enable your business to survive much more easily than would a larger, more gluttonous company.

Just like a diet, one must ask before purchasing or agreeing to a new service: Do I Really Need This? What value will this bring to my business bottom line? Will this current craving enhance my company and is it in alignment with my company’s mission statement and vision? Are there other less expensive options available? Have you considered bartering for a needed service or product? We barter a great deal. Bartering helps establish great bonds and improves your network.

Jeff Cornwall (see below) also explores this topic in his article Stagnation? Double Dip? Here's how Entrepreneurs can survive at the Christian Science Monitor's website. We really enjoyed the concise manner in which he summed up what to expect. He offers some great advice on how to adjust to the economy, so we encourage you to check it out here: http://www.csmonitor.com/Business/The-Entrepreneurial-Mind/2010/0817/Stagnation-Double-dip-Here-s-how-entrepreneurs-can-survive

Do you have some examples on how you may have placed your business spending habits on a diet? We would love to hear your ideas and tips and as always, you can reach us here or at our site: www.entrepreneurexpose.com.


The Entrepreneurial Mind

Stagnation? Double dip? Here's how entrepreneurs can survive.
By Jeff Cornwall, Guest blogger / August 17, 2010

Even the optimists are saying that we have at least two more years of economic stagnation. Other experts are warning of a possible double-dip recession.

There is even growing talk in some circles of America experiencing a "lost decade" in its economy. That refers to the 10-plus dismal years of economic doldrums suffered by Japan in the 1990s.

Recent employment and bank lending rate data seem to support a prolonged recession for small businesses.

So what does this "new normal" in our economy mean for entrepreneurs?

For startup entrepreneurs it means you need to be lean. There will still be new businesses forming, even if the economy takes a turn for the worse. Some of these new businesses will be opportunistic entrepreneurs who see ways to meet the needs created out of the dramatic changes taking place in our economy and society.

Others will be among the growing army of accidental entrepreneurs who are finding that starting something on their own has become the only viable way to make a living during these challenging times.

Whichever path leads you to start a new business, a successful launch will require bootstrapping.

There is very little money being invested in or lent to new small businesses right now, so be prepared to find creative ways to get your business off the ground without a lot of funding.

If you are already a business owner and have survived the past two years of economic turmoil, let me be the first to offer congratulations. Clearly you have found a way to continue to offer value to the market. You must have also been an effective manager.

Some businesses that have survived are hanging on by a thread. If that is the case for your business, continue to pay attention to the basics. Keep cutting overhead, pay down debts and take good care of the customers you have so you don't lose any more of them to stronger competitors.

Every small-business owner should continue to run his or her business cautiously and prudently. There will be more tough times ahead.
Look for growth opportunity

Over the coming months, more of your competitors will probably fail, and that presents an opportunity to attract new customers to your shop.

This can be an excellent time to expand and take advantage of a larger market share. If you do expand, continue to bootstrap and try to keep your use of debt to a minimum. Explore different economic tools available to help you conserve cash such as bartering. Investigate what barter organizations are in your area.

This is no time for excessive leverage because of the uncertainty of the economic outlook.

Whether you are a new entrepreneur or a seasoned business owner, more than ever before remember, cash is king. Given the uncertainty of the economy, entrepreneurs should try to keep enough cash on hand to cover at least 30 days of monthly expenses -- and up to 90 days of cash on hand is not a bad idea, either.

It's also important to keep one eye on the future. Eventually things will improve. And those who survive the Great Recession have a good chance of emerging in a stronger position. The survivors of today will become the market leaders during the recovery.

Submitted by Terry Brandfass