Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
eaya09
New Member

How do I enter a fair trade of my utility trailer for home repairs? I had a sump pump installed including a trench and paid the contractor by signing over the title.

 
1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

How do I enter a fair trade of my utility trailer for home repairs? I had a sump pump installed including a trench and paid the contractor by signing over the title.

You are talking about bartering. In order to deduct any expenses, you are going to have to report the income. In reality, you are required to figure the value of services traded and report that as income. You can ask him what he would have charged for this service. He can use something like the link below.

https://www.sapling.com/8062822/value-used-utility-trailer

Topic 420 - Bartering Income

Bartering is the exchange of goods or services. A barter exchange is an organization whose members contract with each other (or with the barter exchange) to exchange property or services. The term doesn't include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis. Usually there's no exchange of cash. An example of bartering is a plumber exchanging plumbing services for the dental services of a dentist.

Refer to Bartering in Publication 525, Taxable and Nontaxable Income, for additional information on this subject. Persons who don't contract with a barter exchange or who don't barter through a barter exchange but who trade services, may be required to file Form 1099-MISC (PDF), Miscellaneous Income. Refer to the Form 1099-MISC Instructions to determine if you have to file this form. 

You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 and Amended Returns for information on filing an amended return.

If you're in a trade or business, you may be able to deduct certain costs you incur to perform services that you barter.

Refer to Publication 525, Taxable and Nontaxable Income, and our Bartering Tax Center page for more information on bartering income and barter exchanges.


View solution in original post

1 Reply
Coleen3
Intuit Alumni

How do I enter a fair trade of my utility trailer for home repairs? I had a sump pump installed including a trench and paid the contractor by signing over the title.

You are talking about bartering. In order to deduct any expenses, you are going to have to report the income. In reality, you are required to figure the value of services traded and report that as income. You can ask him what he would have charged for this service. He can use something like the link below.

https://www.sapling.com/8062822/value-used-utility-trailer

Topic 420 - Bartering Income

Bartering is the exchange of goods or services. A barter exchange is an organization whose members contract with each other (or with the barter exchange) to exchange property or services. The term doesn't include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis. Usually there's no exchange of cash. An example of bartering is a plumber exchanging plumbing services for the dental services of a dentist.

Refer to Bartering in Publication 525, Taxable and Nontaxable Income, for additional information on this subject. Persons who don't contract with a barter exchange or who don't barter through a barter exchange but who trade services, may be required to file Form 1099-MISC (PDF), Miscellaneous Income. Refer to the Form 1099-MISC Instructions to determine if you have to file this form. 

You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 and Amended Returns for information on filing an amended return.

If you're in a trade or business, you may be able to deduct certain costs you incur to perform services that you barter.

Refer to Publication 525, Taxable and Nontaxable Income, and our Bartering Tax Center page for more information on bartering income and barter exchanges.


message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~