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

[DavidS127 · Accepted solution]

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.

[Carl]

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.