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Karla, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 141
Experience:  Over 17 years performing accounting, tax and consulting service for individuals and small business.
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My band got a 1099 misc with the meals (value) added to the

Resolved Question:

My band got a 1099 misc today and the owner of the club added the meals (value) to the 1099 amount.
So the whole band get paid $200.00 ever Monday plus we each get a free meal to compensate for the low pay. Can the bar owner do that?
Submitted: 6 years ago.
Category: Tax
Expert:  Karla replied 6 years ago.
Hello and thank you for using Just Answer.

Yes, the bar owner can add the value of the meals to your 1099. Barter transactions are considered taxable events by both the IRS and the State of California.
Karla and 4 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Is the value based upon what the club charges on it's menu?
Expert:  Karla replied 6 years ago.
It should be based on the fair market value of the meal, which in this case would be the menu price.