My husband is a farmer, and he receives 2500 bushel of corn at the end of the year. This year that amounted to about $8000. Do we claim this on taxes? And if so, how do we claim to benefit us the most...so we don't screw ourselves and lose most of it. Obviously the grain place that buys the corn, has to list on taxes as an expense, so I would imagine we would have to claim it. Last year H&R Block said it needed to be claimed as self employment income (which sucks because we obviously didn't have any losses on it) and I was wondering if there is a better way to claim it, because it is a bonus, a perk of the job...it is not self-employment income. Please help. And please be honest, I don't want to get into any trouble.
2007-10-09 14:06:43 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
He will have to pay SE tax on it so double SS and income tax. If his employer would sell it and put it on his W2 the employer would pay half the SS tax. So the IRS would get the same tax either way.
2007-10-09 14:17:17 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
Just because it is not money, that doesn't mean it is not iincome. He has received bartering income. His income is what he could (and probably did) sell the corn for.
2007-10-09 14:09:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋