Are there tax advantages to bartering?
Yes and No. “Yes” because (for most businesses) 100% of the monthly dues and fees are deductible, and barter purchases made for business are deductible expenses. “No” because the tax code treats barter transactions identically to cash transactions, and barter sales are considered taxable income in the year they occur. Traders are responsible for issuing and filing Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) for barter transactions. Barter exchanges will often report the barter transactions and issue the 1099-Bs for their clients. TBM does this for its Members.
