If I work for a motel cleaning and in exchange they give me half off on monthly rent amount, is that barter or exchange?

katzmuu · ‎April 7, 2020

DavidS127 · ‎April 7, 2020

Yes, it is barter for the exchange of services. You report self-employment income for the value of the rent discount. In these circumstances, the owner of the motel is required to send you a 1099-MISC with the amount reported in box 7. But, even if you don't get the 1099-MISC, you are required to report the income.

You don't have to send the motel owner a 1099-MISC for the rent you didn't pay if the motel room is for personal use.

See IRS Topic 420 Bartering Income at this link for more details.

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DavidS127 · ‎April 7, 2020

Yes, it is barter for the exchange of services. You report self-employment income for the value of the rent discount. In these circumstances, the owner of the motel is required to send you a 1099-MISC with the amount reported in box 7. But, even if you don't get the 1099-MISC, you are required to report the income.

You don't have to send the motel owner a 1099-MISC for the rent you didn't pay if the motel room is for personal use.

See IRS Topic 420 Bartering Income at this link for more details.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Carl · ‎April 7, 2020

is that barter or exchange?

You can call it either. But the IRS calls it compensation. If you are a W-2 employee and the value of that compensation is not included in box 1 of your W-2, then as far as the IRS is concerned that compensation is self-employment income that gets reported on SCH C as a part of your personal 1040 tax return.

If I work for a motel cleaning and in exchange they give me half off on monthly rent amount, is that barter or exchange?