How to Record Trade with Other Businesses
This is something that a lot of businesses want to do (I’ll trade my Accounting services for your Legal services, for example). The IRS is very clear that bartering or trading goods or services creates taxable income. Basically, the IRS views a trade as though you actually sold your goods or services, then turned around and bought the goods or services from the other business. You are also required to count services you bought using trade in your 1099 totals. In other words,