Advice on how to barter
The University of Illinois Extension offers these tips for successful bartering:
-- Know who will supply needed materials. Usually it is the receiver; but the provider, in some cases, may have the needed tools, such as a lawn mower. When materials must be purchased, work together to determine specifics, cost limits, quality of materials, deadlines and other details that could become irritants.
-- Don't assume anything. Be sure to agree on the details of exactly what will be done. Be sure expectations are clear to all. In some cases a contract or written agreement may be a good idea.
When You Provide a Service
-- Be sure you are clear on details of expected service. Don't take on tasks that you cannot do well.
-- Keep the receiver well-informed on your progress. Inform the receiver also of any problems or delays.
-- Decide when the service is to be provided. If needed by a certain date, be sure you have enough time to do it.
-- If you receive income from bartering, you may be required to pay taxes on this income. Refer to IRS Publication 525, Taxable and Nontaxable Income, for more information.
If You Receive a Service
-- Carefully explain what you want and supervise the work. Don't be caught with a completed job that is not what you expected.
-- Check the provider's qualifications.
-- Make sure the delivery of service is convenient and within the time you want the work done.
-- If the task requires your presence or help, make sure you are aware of this.