Bartering Farm Goods & Services

Trades count as income — here's how
Course #: FN-016
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Field Note Description

  Trade a load of hay for fence work, or bale a neighbor’s field and get paid in a calf? Even when no cash changes hands, the tax rules usually treat a trade as a sale. This Field Note explains how bartering farm goods and services is taxed at fair market value, why what you received becomes your cost going forward, and exactly what to tell your preparer so a friendly trade doesn’t become a tax-time surprise.