Payment in kind tax treatment
What is the tax treatment for payment in kind or bartering?
If your business receives services or goods as payment in kind, you must include the fair market value of whatever you received as revenue, just as if it were paid in cash. This is true whether you barter directly -- one-on-one -- or receive property through a barter exchange that gives you credit for the goods or services you provide.
Bartering through a barter exchange is reported to the IRS on Form 1099-B, "Proceeds from Broker and Barter Exchange Transactions."
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