- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
Hi mtwaynew,
Thank you for your question.
Here are some quotes from IRS.
Quote
Bartering is an exchange of property or services. You must include in your income, at the time received, the FMV of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as FMV unless the value can be shown to be otherwise.
Unquote
Page 20 of https://www.irs.gov/pub/irs-pdf/p525.pdf
Please also refer to Example 23 on Page 20.
Quote
Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.
Unquote
Page 2 of https://www.irs.gov/pub/irs-pdf/p561.pdf
Your goods can be sold on the open market for certain dollar amount (not your cost basis), and the receivers of your goods, if willing, can re-sell on the open market. Hence my opinion - the FMV.
Hope this helps.
**Mark the post that answers your question by clicking on "Mark as Best Answer"