Editing Barter (section)

==Tax implications==
In the United States, [[Karl Hess]] used bartering to make it harder for the [[Internal Revenue Service|IRS]] to seize his wages and as a form of [[tax resistance]]. Hess explained how he turned to barter in an [[op-ed]] for ''[[The New York Times]]'' in 1975.<ref>{{cite book |title=We Won't Pay: A Tax Resistance Reader|editor=David M. Gross|year=2008|pages=437–440}}</ref> However the IRS now requires barter exchanges to be reported as per the [[Tax Equity and Fiscal Responsibility Act of 1982]]. Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form. According to the IRS, "The fair market value of goods and services exchanged must be included in the [[income]] of both parties."<ref>{{cite journal |url=https://www.irs.gov/taxtopics/tc420.html|title=Tax Topics - Topic 420 Bartering Income|publisher=United States Internal Revenue Service}}</ref>

Other countries, though, do not have the reporting requirement that the U.S. does concerning proceeds from barter transactions, but taxation is handled the same way as a cash transaction. If one barters for a [[profit (accounting)|profit]], one pays the appropriate tax; if one generates a loss in the transaction, they have a loss. Bartering for business is also taxed accordingly as business income or business expense.  Many barter exchanges require that one register as a business.

In countries like Australia and New Zealand, '''barter''' transactions require the appropriate tax invoices declaring the value of the transaction and its reciprocal GST component. All records of '''barter''' transactions must also be kept for a minimum of five years after the transaction is made.<ref>{{Cite web |last=Office |first=Australian Taxation |title=Barter and trade exchanges |url=https://www.ato.gov.au/business/gst/in-detail/rules-for-specific-transactions/barter-and-trade-exchanges/ |access-date=2 May 2022 |website=www.ato.gov.au |language=en-AU}}</ref>