Bartering and Trading? Each transaction is taxable to both parties!
Sometimes, when the right opportunity presents itself, people are able to “pay” for goods and services that they need or want by trading goods that they own, or providing a service that they can perform in return. For example, a person who owns a lawn maintenance company may receive legal services from an attorney and “pay” for those services by providing an agreed upon amount of mowing and maintenance services at the attorney’s home or place of business. In this scenario, the fair market value of the legal services that are being provided is taxable to the lawn maintenance company owner. At the same time, the fair [...]