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    SPARKAGE's Avatar
    SPARKAGE Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 13, 2012, 06:26 PM
    Must in-kind merchandise be reported to IRS?
    Working one day a week at an antique store. Owner cannot afford to pay wages,
    so will trade my time for store merchandise. Must I report the value of the
    merchandise to the IRS on my income tax return?
    Thanks.
    Mark
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 13, 2012, 08:23 PM
    The merchandize you are getting is considered compensation, which IS taxable.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Jul 13, 2012, 08:26 PM
    Yes, so be sure in the trade, to consider the money you will pay for the tax on the ideas. I will assume they don't report you as a employee, don't hold taxes out, don't cover you with workers comp or other insurance?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jul 13, 2012, 08:32 PM
    It would have to be considered the equivalent of contract payments under Form 1099-MISC.
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