Bartering for Services/Receiving Gifts & Trades

Posted on May 30th, 2008, by Meggin McIntosh

In today’s SpeakerNetNews (which I recommend you subscribe to; it’s free):

US readers: Reporting gifts and trades — Bill Hodges

Many speakers get in trouble each year for failing to report trades for services. One speaker fell more than $100,000 in tax arrears because he failed to report the trades. A clothing manufacturer paid him with five new suits, a heating company put a new furnace in his home, a hotel chain gave him 25 nights lodging, etc. The customers reported the payment at the high list price, even though all could have been bought for less. In this case IRS took the reported price, and be aware that even if the customer doesn’t report the payment the IRS may still find it. When in doubt always talk to your tax advisor whenever you receive “anything” in exchange for your expertise.

Posted by Meggin | 5/30/08