Barter and Tax

Accounting for Bartercard

From an accounting and tax perspective, there is no difference between cash and Trade Dollars with sales being recorded as income, and purchases being recorded as an expense or asset. Bartercard works like a normal bank account or credit card, except that it uses an alternative, electronic currency (Trade Dollars) that is exchanged between members to pay for goods and services. For all accounting and Income Tax purposes, One Trade Dollar (T$1) is equivalent to One US Dollar (US$1).

Monthly account statements are provided which are similar to a bank or credit card account except that the assets or liability is in Trade Dollars and not cash.

Bartercard is not a way for companies to avoid paying tax. The IRS has helpful information on their website to answer your Barter and Tax questions.

IRS – Bartering Tax Center   |   IRS – Barter Exchanges

Using Trade Dollars to make a donation

Donating to charities that are Bartercard members enables you to assist your community, but did you know that you may be eligible to claim a charitable deduction on your tax return?  It is always recommended that when a Bartercard member is considering making a donation of Trade Dollars to a charity that you consult your tax advisor or accountant to discuss the particulars of the gift, and determine how much of the gift may be deductible for tax purposes. Always seek tax advice for your particular circumstances.


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