Form 1099-B - Bartering Income
Software reference · Written guide Content date 1 min read
Bartering is the trading of one product or service for another. The value of products or services from bartering is normally taxable income. The fair market value of the property or services received in bartering must be included in income.
If property or services were exchanged through a barter exchange, the exchange should issue Form 1099-B to the taxpayer. The bartering income shown in Box 13 represents the cash and/or fair market value of any property or services received, as well as the fair market value of any trade credits or scrip the exchange credited to the taxpayer's account.
Bartering income is generally reported as other income on the form or schedule that the income is associated with.
- If the taxpayer is a sole proprietor and the bartering income is related to their business, it would be reported on the business's Schedule C.
- If the bartering income is related to rental activities or royalties, it would be reported on Schedule E.
- If the bartering income is related to farming activities, it would be reported on a Schedule F.
If the bartering activity or income is related to a personal activity and not related to any business activity or investment in which the taxpayer has an interest, it is considered Other Income.
Note: This is a brief guide on bartering income. This is not intended as tax advice.
Additional information:
Instructions for Form 1099-B, Proceeds From Broker and Barter Exchange Transactions