Is barter credit legal in the US?

Answer by  patti (29325)

You can barter, as long as both parties agree. Two parties certainly can agree to exchange goods or services. Just make sure everyone is clear on the agreement.

Answer by  mammakat (11147)

Yes, it appears it is, however if you are dealing with the IRS you want to be very sure of where you stand. The problem is, barter credit is far lower than pay for services rendered. It is very difficult to prove the value of bartered services.

Answer by  tamarawilhite (17883)

Barter and local currencies are legal in the United States. However, you are still expected and legally required to file a state and federal tax return on any barter income or local currency income in which you are paid, and pay it in US dollars when filing your tax return.