Need a book? Engineering books recommendations...

Return to index: [Subject] [Thread] [Date] [Author]

RE: Savvy Billing Practices

[Subject Prev][Subject Next][Thread Prev][Thread Next]


 

Ø       you still have to take it as income so there is probably no net tax gain.

 

 Kevin Polin asked:  Who Says?  

 

The IRS "says".  In the past some have tried to set up trading of services as a way to get around income taxes.  But the IRS ruled that if you receive something of value in return for your services, including other services in return, the value of those services are taxable as income.

 

 Kevin Polin wrote:  Implying that you must report services exchanged in lieu of payment, so you might as well just charge them is a very bad policy…

 

Actually, it is very bad policy to risk your business by trying to avoid taxes illegally.