neilbrink Posted April 8, 2008 Report Posted April 8, 2008 My client, a farmer, received 3 breeding heifers for labor he did for his neighborv valued at $1800. We should show income of $1800 and list the breeding heifers as assets for depreciation. What do you think? Neil Quote
indyscott Posted April 9, 2008 Report Posted April 9, 2008 Almost like he got paid cash for the work and paid the cash back for the cows.. Sounds reasonable.. warning: beware of tax laws that sound reasonable. Actually, I think you have it right. But, there's probably some Barter form I'm not aware of. Quote
GeneInAlabama Posted April 9, 2008 Report Posted April 9, 2008 Income is the same whether it is cash, check, credit card, or barter. The same applies for expenses. Quote
kcjenkins Posted April 9, 2008 Report Posted April 9, 2008 Yes, he can show the labor income, as 'custom hire' on line 9 of the F, and depreciate the breeding stock. I try at all times to avoid 'barter income', so even tho these two items cancel each other out, if you §179 the heifers, I would report both sides. Quote
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