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Mar 24, 2009

Art barter laws

I'm reading up on art barter laws for a new project, willworkforart.com. Here's what I found so far.

willworkforart.com is a DIY barter market for art, and will have four areas that you can post in:

  • art for stuff
  • art for services
  • stuff for art
  • services for art


The terms of use will have disclaimers and whatnot, and I'm trying to figure out what I/you should know about taxes and laws related to bartering.

So far, here are the bullets, and below are a couple links to things I'm finding helpful:

  • The gov't sees barter as a two-part cash sale
  • i.e. it's as if there was an exchange of cash as the agreed value of the barter
  • i.e. you will owe both sales tax and income tax on the value of the barter
  • If you barter for art/studio supplies, you can write off the value off the value of the barter, but you'll still owe sales tax on it




Links:
http://www.artbusiness.com/barter.html

http://www.law.com/jsp/law/sfb/lawArticleSFB.jsp?id=1110202467520

The Business of Being an Artist, by Daniel Grant at Google Book Search