Many people are not aware that the benefits derived from barter transactions are taxable and must be reported to the Internal Revenue Service on IRS Form 1099-B and your state tax return.
The IRS and your state maintain Websites where you can download income tax forms to report barter income. Generally, whatever property or services that you barter for amount to taxable income based on the fair market value (FMV) of the property or services received by the taxpayer. Barter network membership and transaction fees may be deducted as permissible expenses. If you are a member of a barter network, it is the responsibility of the network to provide you with a link to the IRS Form 1099-B.