Maximize Profit, Minimize Taxes
In This Chapter
◆ Too much in trade sales can be costly in taxes
◆ Trade purchases can be deductible
◆ Barter strategies to minimize taxes
◆ Playing too loose with direct trade
Sometimes when people talk about trade exchanges and barter, the matter of taxes gets all lopped together. They fail to make a distinction between one-on-one barter and organized trade exchanges. The uninformed hears the word “barter” and figures it’s all a part of the “underground economy.” It’s true that some people finagle the government out of billions of dollars of taxes by direct trading. For example, a house painter trades with a dentist, and both parties fail to report any income.
Trade exchanges are different.
Trade dollars ...