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see exchangeexchange,
mutual transfer of goods, money, services, or their equivalents; also the marketplace where such transfer occurs, such as a stock exchange or a commodity exchange (see commodity market).
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in civil law, one of the forms of contract whereby the parties exchange property for other property. After the barter contract is executed, each of the parties loses the right of ownership to the property transferred and acquires that right to the property received. The similarity between the barter contract, which involves the compensated transfer of ownership of property, and the contract of sale and purchase means that many of the rules relating to the contract of sale and purchase can be applied to the barter contract (a procedure established in Soviet legislation).

Barter originated as a primitive form of commodity exchange but was supplanted by sale and purchase and has generally become insignificant. Under Soviet law the barter contract usually is concluded between citizens, but it may also be made between cooperative and other public organizations. A barter contract involving state organizations may be concluded in cases specifically envisioned by the laws of the USSR and the Union republics.


trade by the exchange of goods
References in periodicals archive ?
It appears that the IRS failed in Publication 535 to explicitly clarify the full tax treatment of a barter transaction in accordance with tax law, including case law.
There is further evidence supporting the deductibility of services received in a barter transaction on the IRS webpage, "Record Keeping for Business Barter Transactions":
Just as cash business expenses associated with bartering are deductible, barter used as compensation is deductible and subject to employment taxes and information reporting.
Moreover, the IRS devotes two pages on its website to barter exchanges: "Barter Exchanges" and "Tax Requirements for Barter Exchanges.
The larger barter exchange networks have thousands of clients, making them a viable source for many business needs, such as office equipment and supplies, printing, advertising, cleaning and maintenance services, professional services and travel and entertainment (T&E).
The Tax Equity and Fiscal Responsibility Act of 1982 classifies barter exchange networks as brokerages, so they are required to file 1099-B forms listing the sales of client companies.
Just as business expenses covered through barter are deductible to the same extent as cash, barter used as compensation is subject to personal taxes.
BCL Soft owners Barry Cohen, Catherine Cohen and Luther Monson developed Barter21 with the needs of barter exchange owners and barter exchange members in mind.
Launched in February 2009, Barter21 is the best barter exchange management software in the industry.