One of my favorite things about bartering is that it becomes difficult for government to stick their greedy, stupid paws into our transactions and take away a share for foreign wars, domestic spying, bank bailouts, etc.
“With trust in the world’s currencies at its lowest point in recent memory, bartering has reemerged as a possible solution to the credit crunch. All but forgotten, bartering predates any modern form of currency, and arose naturally in the ancient world as the primary means of economic exchange. Today, there are a number of barter systems in place alongside replacement currencies that operate on a local level in cities or small rural villages. Whether these approaches come from a hot Web 2.0 startup or a tiny Thai village, they are changing the economic landscape. Here’s a look at some of the most promising. . . . .
. . . . While few might stop to think about the legal ramifications of bartering, it should be noted that even though it seems informal, bartering is a transaction just like any other. For those trading goods or services of a marked value, a contract ought be used to protect both parties. According to SMU Law professor, Mary Spector, every aspect of the exchange should be outlined, for example, with regards to pet care being exchanged: ‘Would [four hours of pet care] mean grooming the pet? Walking the pet? How many pets would be involved? Is it just dogs or would it be dogs and fish?’
Similar to the legal ramifications, there are also tax implications of barter-based commerce. According to the IRS, ‘If you conduct any direct barter – barter for another’s products or services – you will have to report the fair market value of the products or services you received on your tax return.'” (Read more from mint.com)