How to Use Bartering in a Down Economy

With money scarce and jobs in short supply, bartering is on the rise again. This article shows you how you can get the things you want and need through this form of exchange.

Instructions

1. Enlist the help of websites that act as middlemen, such as Craigslist, Trade A Favor and Joe Barter. SwapThing is another popular site.

2. Trade with your family or friends first if you are a beginner, so that you can get a feel for the process and make sure that your exchanges are fair and worthwhile.

3. Have a reasonable idea of the actual cash value of the service you're giving and/or receiving in order to know whether your trade is fair and equitable. Trading similar kinds of goods or services can keep ambiguity to a minimum. Trading one CD for another or exchanging houses or cars for a vacation will be much easier to weigh than babysitting for car repairs.

4. Keep adequate tax records in case you have to report your transactions. However, not all trades need to be documented. Usually the IRS is primarily concerned with trades that are replacing income you would have otherwise received. Your tax advisor can best assist you in determining whether a trade should be reported or not.

Resources

• Craigslist
• Trade A Favor
• Joe Barter
• SwapThing