For occasional inbound faxes, I use:
They provide a free service which assigns a fax number, (not necessarily in your local area code..)
Faxes come to this number, and then an eMail is generated to me which has the fax as an attachment.
There is a small (free) program that you install to view the fax. Works great…especially when you receive only a few faxes per year.
They’ll try to get you to sign up for a paid service, for about $13.00/month which would include a number of your own choosing and your own area code. However I don’t find this necessary.
For oubound faxes, I used to use my fax modem, but then I ended up having to send items that were on paper. So, I went for an HP 1010, about $175.00. This is an inkjet unit, which also works as a low-volume copy machine.
tfnp 
Note too, that if you have signed up for an Internet Phone services it may include fax capability with your own fax number.
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