Are there any tax advantages or disadvantages to modern trade in a barter exchange?

Trade credits should be viewed as you do your cash income. There are no inherent tax advantages or disadvantages just because you utilize modern trade. Utilizing a trade exchange is a marketing tool, not a tax tool. Generally speaking, as with cash income, purchases made with your trade credit that are business-related are deductible, and conversely, purchases made for personal use are not deductible.

What constitutes income in a trade exchange transaction?

Any time trade credits are posted to your account within the exchange, property or services are received, cash is received or scrip is issued to you as part of a trade transaction.

In what year are trade credits taxable?

Currently, the United States is the only country with defined reporting requirements for trade exchanges. Therefore, members of any U.S. trade exchange will receive a form 1099B from the exchange based on the calendar year. The 1099B will show the amount of trade credit posted to your account for that year. These amounts should be included in your annual tax filing.