Frequently Asked Questions
What are Trade Dollars?
They are a privately issued and circulated medium of exchange that represents the goods and services you have that can be used to acquire what you need. Dollar for dollar, they are treated the same as cash in earning, spending, and deducting. It is income that can be used for both business and personal needs.
Why Use the Trade Association and Trade Dollars?
Use your trade account to offset your cash expenses thereby conserving your cash. Expand economic opportunity within your community. It offers the potential for more exchange between businesses and with citizens in your community. When there is a gap between available goods and services and the needs or desires within a community, the Trade Association provides the means to create an exchange and augment cash resources.
Is using Trade Dollars Legal?
It is an entirely legal means to supplement the use of federal currencies.
What is the tax law concerning Trade Dollars?
The federal government considers them to be the equivalent of cash. Trade exchanges have the same reporting requirements as banks, savings and loans, credit unions and stock exchanges, as defined by the TEFRA Act of 1982. The Trade Association is required to report to you and the IRS, sales for the relevant tax year on a 1099B form. Other countries do not currently have income reporting requirements.
Why do I have to give you my taxpayer ID number (TIN) or social security number (SSN) to join?
iTrade must have your Taxpayer ID number or social security number to report transactions to the IRS as required by the TEFRA Act of 1982 (see above).
Can I deduct my expenses?
Yes. Expenses made using Trade Dollars create the same deduction as if done in a cash transaction and therefore offset your tax liability.
What about donations using Trade Dollars?
They are treated in the same manner as cash.
Does iTrade South Dakota assist with tax compliance?
Yes. The system software has full tracking and recording capabilities and generates all required reports.
How are goods and services priced when using Trade Dollars?
All sales are priced the same as cash. Some discounts and special offers may not apply .
Why do I have to provide a credit card number to join?
iTrade requires that you supply a credit card number to us when you join so that transaction fees and dues can be automatically charged to you.
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