ON ONE ACCOUNT, we are umbrellaed under another business, they deal with the main tire dealership when we do a job for them , we dont get paid cash , or even a check we receive tire credits, on the labor we do . eventually we have an overstock of tires, because we do more account work than resale of the tires we receive. my question is can the fed. gov. tax the tires we receive on credits?, (un till the resale of the tires? )
2007-04-30 10:13:10 · 2 answers · asked by live4toons 2 in Business & Finance ➔ Taxes ➔ United States
from the IRS:
>>>>Bartering is an exchange of property or services.
You must include in your income, at the time
received, the fair market value of property or
services you receive in bartering.<<<<
2007-04-30 10:26:36 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
Until the cash hits your hand it is still a credit. They deal with "what is" and not "what if".
2007-04-30 17:25:37 · answer #2 · answered by acmeraven 7 · 0⤊ 2⤋