Do you have to pay income taxes if you use a system of barter for everything?
Hypothetically, say you exchange your products and services in return for food, clothes, everything, even big ticket items like cars. Would you still have to pay any income taxes even though you don't earn a dollar salary?
Public Comments
- Yes Straight from the horse's mouth.... http://www.irs.gov/newsroom/article/0,,id=205581,00.html
- Yes, the fair market value of whatever you get by barter is legally taxable income to you.
- You are required to pay tax on the value of what you receive in a barter transaction. Also, you may be required to use Form 1099-B to report the value of what you exchanged.
