If Alex,an attorney,agrees to provide legal services to a friend in exchange for the friend agreeing to fix his car,Alex and his friend will have to report income on this transaction at fair market value.

Question

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According to the IRS, if someone provides goods or services in exchange for other goods or services, both parties must report income at fair market value. In this case, Alex will need to report the value of the legal services he provided, and his friend will need to report the value of the car repair services he provided.

If Alex,an Attorney,agrees to Provide Legal Services to a Friend