Can Bartering Really Help In Decreasing Inflation and Taxes?

Barter system is back. With some new models and tools, the old practice of exchanging goods and services is reinvigorating.

In the midst of economic crisis marked by a shortage of cash and unstable currency, barter schemes and time banks are exploding in popularity in parts of Greece. Today, 30 percent of global businesses still opt for barter system, in some cases. Mercedes Benz once bartered buses for bananas in a $65 million deal, while PepsiCo has swapped cola for Stolichnaya vodka in a long-running Russian deal.

While bartering is taking over the economic dynamics, it has transformed into many different forms to benefit especially those who don’t have money but a lot to offer in terms of goods and services. This is where swapping sites come handy to help people conduct small scale bartering.

When it comes to modern bartering, there is no limit to what people can offer to the community and help influence the economic system.

How Modern Bartering Can Affect Inflation

While barter system may not be practical for some economies, it does offer some benefits to the system by influencing inflation rates. In a money-based economy, inflation can cause money to lose its value which means if $1 could buy you a stack of apples last years, it may only buy a few of them now. Bartering, on the other hand, can save your economy from the stress and disaster of inflation. Thanks to the internet that has now made it easier for people to find traders and swap things.

Bartering networks, such as Swoppler, specialize in helping barterers find each other. Using the swapping site, you can find what you want accepting goods or trade credits. This way, the system may become less reliant on paper money, which can subsequently control the flow of money as well as the rate of inflation.

 

How the IRS Taxes Bartering

If you think that bartering may prevent you from taxes, you are wrong. If you are getting net gains by simply bartering, you may be required to pay some taxes. But, there are some ways to reduce your tax burden in swapping. Let’s say, if you exchange some of your surplus items in a way that causes both parties to lose valuable assets, you can list these expenses to offset some of your tax liabilities. Moreover, if you trade some extra credits to donate them to a charity, this may also allow you to defer some taxes. Also, you can use your trade credits to buy something of greater value, so that it qualifies for capital reinvestment for business purposes.

Whether you barter for fun or relying on online bartering as a mode of survival, Swoppler has made it much easier for you to get in touch with a large network of potential buyers and sellers in your vicinity. Get Swoppler App and start swapping today!