In these tough economic times, an ancient form of trade is making a comeback. "Bartering" is booming, thanks in part to web sites that make it easier than ever to exchange services.
"I think it's great," says Betsy Drake, a hair stylist. She exchanges cuts with another stylist, Josh Childs, and the two call it even.
A mother of two, Betsy also barters for other services.
"I have a house sitter and we exchange services a house sitter and pet sitter," says Betsy.
Josh traded haircuts for the sign in front of his salon, and also for business cards.
These two hair stylists aren't alone.
Web sites like Craigslist report a 100 percent increase in bartering ads since last year.
Just type in in the Portland area and you'll find a long list of ads, from gardeners to electricians, all posted by people are offering to trade their services for things they want or need.
Those interested in bartering need to be aware that trading services creates taxable income.
Tax agent April Gutierrez says that, by law, the IRS requires people to , and there's a special Form 1099-B for it.
Still, for people like Josh and Betsy, though bartering is just a small portion of their business, it is shear genius when money is tight.
More:
