How does Sierra Pacific Barter Exchange work?
Members of the Sierra Pacific Barter Exchange use trade dollars instead of cash dollars to do business together. When a member trades goods and services valued at one thousand dollars to another member, the seller will receive one thousand trade dollars, which can then be used to purchase a variety of goods and services from other members of the Sierra Pacific Barter Exchange. This is referred to as a private monetary system. Rather than using cash dollars, which are backed by the Federal Reserve, a member uses trade dollars which are backed by the value of your goods or services. Trade dollars only have vaule inside the exchange and cannot be used as cash dollars in the public monetary system. Sierra Pacific Barter Exchange is a third party record keeper that sends monthly statements to each member reflecting their purchases, sales and current balance. They also issue IRS Form 1099 B at the end of the year.
Related Questions
- Form 1099-B, Proceeds from Broker and Barter Exchange Transactions will be mailed to shareholders who have sold any of their fund shares during the year. (See the answer to the question: Why did I receive Form 1099-B, and where do I report the information?
- What are the benefits of launching my own trade exchange with The Barter Trainer Program?
- Why is the Sierra Pacific Barter Exchange unique?
