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PAYMENT
Payments
- All payments are made with MAGKs
- MAGGEX is a price moderator
- MAGGEX acts as the payment guarantor
- MAGKs allow to transfer the ownership from sellers to buyers
- Delivery, if not included in the price, is paid separately
Tax Implications of Bartering
The Internal Revenue Service (IRS) considers bartering a form of revenue and something that must be reported as taxable income.
Under the U.S.'s generally accepted accounting principles (GAAP), businesses are expected to estimate the fair market value of their bartered goods or services. This is done by referring to past cash transactions of similar goods or services and using that historical revenue as a reportable value.
When it is not possible to accurately calculate the value, most bartered goods are reported based on their carrying value.
For the IRS, estimated barter dollars are identical to real dollars for tax purposes, which means that barter arrangements are considered the same as cash payments. The barter dollars are reported as income and taxed in the fiscal year in which the barter occurred.
The IRS further distinguishes between different forms of bartering, and there are slightly different rules for each type. Most nonmonetary business income is reported on Form 1040, Schedule C—Profit or Loss from Business.
Since bartering has tax implications, it's worth consulting a tax professional before making any significant commitments.
