Contract Glossary
Barter Agreement
Definition
A contract where parties exchange goods or services directly instead of using money. You design their website; they provide six months of accounting services. No cash changes hands, but the exchange still has real value, and real tax implications.
In Practice
A photographer trades headshots for a lawyer's contract review. A marketing agency swaps social media management for a startup's SaaS subscription. Barter agreements are common among freelancers and small businesses, but don't make the mistake of thinking 'no money = no taxes.' The IRS considers bartered goods and services taxable income at fair market value.
Common in these contract types
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Frequently asked questions
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