According to the IRS: Bartering is the trading of one product or service for another. Usually
there is no exchange of cash. Barter may take place on an informal
one-on-one basis between individuals and businesses, or it can take
place on a third party basis through a modern barter exchange company. An example of bartering is a plumber exchanging plumbing
services for the dental services of a dentist.
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.
For more information please select the following links:
IRS Topic 420 - Bartering Income
https://www.irs.gov/taxtopics/tc420.html
Bartering Tax Center