Bartering Issues

From the IRS.gov website

IRS Tax Tip 2009-58

Bartering is the trading of one product or service for another. Usually there is no exchange of cash. Barter may take place on an informal one-on-one basis between individuals and businesses, or it can take place on a third party basis through a modern barter exchange company.

Bartering is the most ancient form of commerce. While our ancestors may have exchanged eggs for corn, today you can barter computer services for auto repair.

Another example of a one-on-one, non-barter exchange transaction is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of the goods and services exchanged must be reported as income by both parties.

. . . read the rest on IRS.gov.

• Visit the IRS Bartering Tax Center

If you have any questions, please call our office and we will be happy to help you.