Sep/16

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Taxes and Bartering

This day in age, bartering services have become a very popular activity. Have you bartered and provided your chiropractic services to an individual in exchange for their services such as a gym membership or attorney advice. What many individuals do not realize is that there are tax implications to bartering. Essentially, bartering should be treated as cash and you are subject to income tax when engaging in these types of activities. When it comes to keeping up with the IRS rules around taxes and bartering, it is important to have someone on your side who knows the ins and outs. By partnering with Todd Crabtree, your chiropractic practice will be in line with the IRS rules around taxes and bartering, rather than behind!

Taxes and Bartering 101

Some individuals do not even realize they are bartering until the IRS comes knocking on their door. Simply put, bartering is the trading of one service or product for another. There may not be any currency exchange in the transaction. However, in topic 420, the IRS references Bartering Income. In short, the IRS treats bartering as taxable income. The value of the services or products that you receive should be reported as income. These goods should be treated as taxable income in the year you receive the services or products. The increased use of the Internet has made bartering an even more popular practice. Don’t be the chiropractic facility that gets put in the limelight for all of the wrong reasons. Instead, take the necessary steps to ensure that you are in line with the IRS bartering requirements.

Expert Guidance

So, if you have been bartering with other businesses around your community or online, it is important to treat the goods or services that you received as taxable income. These services or products should be treated the same way as if you received cash. Todd Crabtree and our staff understand that trying to determine the fair market value of services and how to properly track this type of activity with the IRS is very difficult for the average chiropractic facility. So, instead of losing sleep over night in fear that the IRS may be coming your way to perform an audit, let our staff keep you in good graces with the IRS through proper taxation processes.

If you would like to speak to Todd Crabtree and our expert support staff about taxes and bartering or any other type of advice, give us a call today at (651) 351-2899.

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