Pay or Barter?

By on May 5, 2006 in Forum, Front Page

I have a question for the number-types in our group–or anyone else who has experience with this.

Say I’m doing business with someone and we decide that our services will cost about the same, say $999. For tax and accounting and income and expenses reasons, should we barter or pay each other? In other words, should we both pay nothing and consider it even and a done deal, nothing in the books, no money changing hands or should I pay them $999 and they pay me $999?

Thanks for any advice.

- Bradley

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One Response to Pay or Barter?

  1. Avatar of Gil Zeimer
    Gil Zeimer June 1, 2006 at 7:07 am #

    Bradley:
    I’ve done both. If you each want to pay more taxes, pay each other and be taxed on about 1/3. If you want to barter, don’t pay each other and Uncle Sam won’t know the difference.
    Thanks,
    Gil

    Reply

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