I found this on a blog, and will link to the original article, but the author points to the zero-liability advantage of using barter for legitimate business expenses. This is one of the hot points for me and barter. I love this one. The article is spun specifically for Bartercard in Australia, but it is applicable in the United States and I would assume Canada as well.
Having just completed last financial year?s tax return, one of the most important struggles for Australian small to medium enterprises (SMEs) is setting up the year ahead with minimal tax exposure. According to Adrian Raftery, Director of Sydney based tax firm, 1800 TAXMAN, and 12-year long member of Bartercard, one way to do this is for SMEs to trade or swap their excess stock or idle capacity for tax-deductable expenses like printing and advertising through the barter trade network, using Trade Dollars.
“If you spend Trade Dollars on tax deductable expenses then you are going to be tax-neutral and then be freeing up cash for your own investment,” Mr Raftery said. Mr Raftery has utilised his Trade Dollars for a range of tax deductable items including an intense bus advertising campaign over the past few tax seasons since 2006. “The amount of enquires we got that resulted in cash transactions was amazing. We may have spent T$30,000 but we got back four times that amount in cash sales.”
“It is a no-brainer for services businesses with the extra capacity to use Trade Dollars on tax-deductable expenses because their cost of goods is really their own time plus a few overheads such as rent, computers and stationery,” he said.
See the full article at http://aftereffects.digitalmedianet.com/articles/viewarticle.jsp?id=1208269