Calculating tax on barter (private party)

Forum|Forum|2 years ago
February 16, 2024
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I traded some items with another person (no cash involved). Are the values for tax purposes calculated based on what I originally paid, original retail value, current retail value, or current market value?

Do monies I originally paid for the items I traded (including taxes) change anything I enter like values or gain?

Would this go under investment income?

CatinaT1

This will go under Less Common Income.

When you are in the Less Common Income Section, select Start next to Miscellaneous Income, 1099-A, 1099-C
Select Bartering income not already reported

When you get to where you need to Enter your bartering income, you'll have to convert the goods or services you received to a cash value by finding its fair market value. The fair market value is the actual cash value that the goods or services are worth to the public. In other words, find out how much it'd cost to buy the goods or services you received.

Be sure to click on the blue Learn More for additional information. The window that will open also has examples and how to find the fair market value.

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rwom1217Author

Is the actual cash value based on what they'd sell for at retail, or what they would sell for on places like offerup, ebay, etc?

RobertB4444

It's what it would cost you to buy it. Assume you would pay the lowest possible price in order to get it in a condition as close to identical to the condition they were in when you traded them.

@rwom1217

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