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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
