If Elliot,an accountant,agrees to provide tax services to a neighbor in exchange for the neighbor agreeing to fix his pool,Elliot but not his neighbor will have to report income on this transaction at fair market value.

Question

Quizplus · Accepted Answer

Both Elliot and his neighbor must report income at fair market value for the services exchanged, as bartering is considered taxable income for both parties involved.

If Elliot,an Accountant,agrees to Provide Tax Services to a Neighbor