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Hello and thank you for using Just Answer.The value of the vehicle would be counted as income by the receiver. You can receive income in the form of money, property, or services. Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you are an employee the value would be shown on your W2 if you are an independent contractor (self employed) your Schedule C would include the value of the vehicle.
The value of the vehicle may exceed the value of the professional services. Additionally, a vehicle I currently own would be traded in as part of the deal.
Then you could adjust the payment by the value of the trade in. The remaining amount would be income.
Ok. Thank you very much! MARC
You are welcome. You can always come back even after you click ACCEPT.
I may do that once I finalize this process with my client. He obviously sees this as a write off or loss on the vehicle and not cost for the project. That's why I needed some direction.
For him, it would be the same as paying you cash. He receives no more or less in the deal, as far as taxes go.
That's what I thought. Ok, Thanks again!
Best of luck,