In the United States, Karl Hess used bartering to make it harder for the IRS to seize his wages and as a form of tax resistance. Hess explained how he turned to barter in an op-ed for The New York Times in 1975.[31] However the IRS now requires barter exchanges to be reported as per the Tax Equity and Fiscal Responsibility Act of 1982. Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form. According to the IRS, "The fair market value of goods and services exchanged must be included in the income of both parties."[32]
The same thing holds true of all other possessions; for barter, in general, had its original beginning in nature, some men having a surplus, others too little of what was necessary for them: hence it is evident, that the selling provisions for money is not according to the natural use of things; for they were obliged to use barter for those things which they wanted; but it is plain that barter could have no place in the first, that is to say, in family society; but must have begun when the number of those who composed the community was enlarged: for the first of these had all things in common; but when they came to be separated they were obliged to exchange with each other many different things which both parties wanted.
The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a "theory of equitable exchange" as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed "schemes of labour notes based on labour time, thus institutionalizing Owen's demand that human labour, not money, be made the standard of value."[16] This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an I.O.U. circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers.
Other countries, though, do not have the reporting requirement that the U.S. does concerning proceeds from barter transactions, but taxation is handled the same way as a cash transaction. If one barters for a profit, one pays the appropriate tax; if one generates a loss in the transaction, they have a loss. Bartering for business is also taxed accordingly as business income or business expense. Many barter exchanges require that one register as a business.
Modern barter and trade has evolved considerably to become an effective method of increasing sales, conserving cash, moving inventory, and making use of excess production capacity for businesses around the world. Businesses in a barter earn trade credits (instead of cash) that are deposited into their account. They then have the ability to purchase goods and services from other members utilizing their trade credits – they are not obligated to purchase from who they sold to, and vice-versa. The exchange plays an important role because they provide the record-keeping, brokering expertise and monthly statements to each member. Commercial exchanges make money by charging a commission on each transaction either all on the buy side, all on the sell side, or a combination of both. Transaction fees typically run between 8 and 15%.
The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a "theory of equitable exchange" as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed "schemes of labour notes based on labour time, thus institutionalizing Owen's demand that human labour, not money, be made the standard of value."[19] This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an IOU circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers.
On paper, this sounds a bit like delayed barter, but it bears some significant differences. For one thing, it’s much more efficient than Smith’s idea of a barter system, since it doesn’t depend on each person simultaneously having what the other wants. It’s also not tit for tat: No one ever assigns a specific value to the meat or cake or house-building labor, meaning debts can’t be transferred.
While it may be free, there is no one monitoring the barter ads, so you must be aware of potential Craigslist scams, and realize that you are always at risk when it comes to meetups and exchanges. For example, about a year ago, I arranged to trade massage gift certificates for housecleaning. Since the individual was coming to my home, I was more nervous than usual. However, she offered good previous references, and we  arranged for a time to meet when my husband would be home, in case an odd, unexpected, or even dangerous situation arose.
No academics I talked to were aware of any evidence that barter was actually the precursor to money, despite the story’s prevalence in economics textbooks and the public’s consciousness. Some argue that no one ever believed barter was real to begin with—the idea was a crude model used to simplify the context of modern economic systems, not a real theory about past ones.
Adam Smith, the father of modern economics, sought to demonstrate that markets (and economies) pre-existed the state, and hence should be free of government regulation[citation needed]. He argued (against conventional wisdom) that money was not the creation of governments. Markets emerged, in his view, out of the division of labour, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter. Specialization depended on trade, but was hindered by the "double coincidence of wants" which barter requires, i.e., for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal, that they thought no one would refuse. This is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated.[3]
Her answer came, finally, in an unlikely place: at a bar on Robson Street in Vancouver during the Winter Olympics. It was close to midnight, and she was waiting in line for a drink. All around her, people were partying—except for the two women in front of her, who were dissecting the differences between tax-free savings accounts and RRSPs. Simmons barged in to their conversation. “What do you want to know about TFSAs?” she asked. “What’s your goal?” She pulled the two aside and, for 20 minutes, gave an impromptu finance session. As a gesture of thanks, the two women bought Simmons and her group a round of beer. “I can’t afford financial advice,” one of them told Simmons, “but at least I can give everybody here a beer.” Then, Simmons felt like a cartoon megawatt bulb appeared over her head. It is all you can do, she thought. It is all you can do. There, in the middle of the crowded bar, she blurted, “Oh my god! I’m bringing barter back!” 

Other anthropologists have questioned whether barter is typically between "total" strangers, a form of barter known as "silent trade". Silent trade, also called silent barter, dumb barter ("dumb" here used in its old meaning of "mute"), or depot trade, is a method by which traders who cannot speak each other's language can trade without talking. However, Benjamin Orlove has shown that while barter occurs through "silent trade" (between strangers), it also occurs in commercial markets as well. "Because barter is a difficult way of conducting trade, it will occur only where there are strong institutional constraints on the use of money or where the barter symbolically denotes a special social relationship and is used in well-defined conditions. To sum up, multipurpose money in markets is like lubrication for machines - necessary for the most efficient function, but not necessary for the existence of the market itself."[12]
Her answer came, finally, in an unlikely place: at a bar on Robson Street in Vancouver during the Winter Olympics. It was close to midnight, and she was waiting in line for a drink. All around her, people were partying—except for the two women in front of her, who were dissecting the differences between tax-free savings accounts and RRSPs. Simmons barged in to their conversation. “What do you want to know about TFSAs?” she asked. “What’s your goal?” She pulled the two aside and, for 20 minutes, gave an impromptu finance session. As a gesture of thanks, the two women bought Simmons and her group a round of beer. “I can’t afford financial advice,” one of them told Simmons, “but at least I can give everybody here a beer.” Then, Simmons felt like a cartoon megawatt bulb appeared over her head. It is all you can do, she thought. It is all you can do. There, in the middle of the crowded bar, she blurted, “Oh my god! I’m bringing barter back!”

Her answer came, finally, in an unlikely place: at a bar on Robson Street in Vancouver during the Winter Olympics. It was close to midnight, and she was waiting in line for a drink. All around her, people were partying—except for the two women in front of her, who were dissecting the differences between tax-free savings accounts and RRSPs. Simmons barged in to their conversation. “What do you want to know about TFSAs?” she asked. “What’s your goal?” She pulled the two aside and, for 20 minutes, gave an impromptu finance session. As a gesture of thanks, the two women bought Simmons and her group a round of beer. “I can’t afford financial advice,” one of them told Simmons, “but at least I can give everybody here a beer.” Then, Simmons felt like a cartoon megawatt bulb appeared over her head. It is all you can do, she thought. It is all you can do. There, in the middle of the crowded bar, she blurted, “Oh my god! I’m bringing barter back!”
Account Executives are responsible for networking and connecting with business owners and entrepreneurs to teach them how the BarterPay system works and to bring them into the network. Account Excecutives are responsible for helping them understand the advantages of bartering and working through the inital plan that will be relayed to the Trade Broker when the business activates an account.
When exchanging services, it’s important to remember that bartering is considered income. While you may be able to write off expenses you incur during the barter, you must claim the fair market value of the services you provided as income. For example, if you charge $60 an hour as a massage therapist, and you trade a one-hour massage for housecleaning services, you may have to claim the equivalent income. When you trade assets, you may even be responsible for tracking capital gains or losses. If you have any doubts or questions, consult the IRS website.
Within the week, Simmons gave notice to her employer. By then, she’d been pining to leave for eight months and had diligently saved for the occasion. Her plan now was to barter her financial services with other women for one year. That would be enough time, she figured, to get the altruism out of her system, but not so much that she’d go broke. She would use $10,000 in savings to pay her cellphone bill and to parcel out $35 in emergency spending each week if and when bartering fell through on the basic necessities. That money would also help pay for most of the rent at the Dovercourt and Queen apartment she shared with her boyfriend, Matt, who was in the midst of changing careers. Everything else—food, clothing, haircuts, fitness, entertainment and transportation around the city—she would acquire through barter. Simmons figured she’d need to barter with 300 women to make it work. She gave the project a catchy name, Barter Babes, and started organizing a launch party. 

Economists since the times of Adam Smith (1723-1790), looking at non-specific pre-modern societies as examples, have used the inefficiency of barter to explain the emergence of money, of "the" economy, and hence of the discipline of economics itself.[3] However, ethnographic studies have shown that no present or past society has used barter without any other medium of exchange or measurement, nor have anthropologists found evidence that money emerged from barter, instead finding that gift-giving (credit extended on a personal basis with an inter-personal balance maintained over the long term) was the most usual means of exchange of goods and services.[4]
The eXmerce barter system is set up different than traditional barter. Instead of trading products or services directly with another business, you earn Trade Dollars when a member buys from you. You can then use those Trade Dollars to purchase hundreds of products or services. Whether it’s personal or for your business, there is so much to choose from within the eXmerce community.

The first 23 Barter Babes to join were friends and former PH&N co-workers who wanted to support Simmons. They mostly traded items and services to help out with the launch party: a lot of food, a press release, coat racks, silent auction items, courier services and social media consulting. Barter Babe No. 24, Grace Poon, was the first person to sign up for the project with whom Simmons had no prior connection. In exchange for Simmons’s financial advice, Poon provided graphic designs for an investment presentation (which Simmons still uses today). She remembers being excited, but also nervous: it was the first trade she’d made with someone who didn’t feel obligated to give her unconditional support. She needn’t have worried.

For instance, each time Apple releases a new version of the iPhone, the second-hand market for older versions of the iPhone enjoys a flurry of activity. However, you do have to be as careful with the barter of used goods as you would be with the purchase of used goods. Be sure everything is in working order and shows no signs of significant damage. 

When exchanging services, it’s important to remember that bartering is considered income. While you may be able to write off expenses you incur during the barter, you must claim the fair market value of the services you provided as income. For example, if you charge $60 an hour as a massage therapist, and you trade a one-hour massage for housecleaning services, you may have to claim the equivalent income. When you trade assets, you may even be responsible for tracking capital gains or losses. If you have any doubts or questions, consult the IRS website.
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