Fair market value. If there is a stated price for services, this price is treated as the FMV unless there is evidence to the contrary. Your gain on the sale is figured as follows. Your gain or loss realized from a sale or exchange of property is usually a recognized gain or loss for tax purposes. Recognized gains must be included in gross income.
Recognized losses are deductible from gross income.
However, your gain or loss realized from certain exchanges of property is not recognized for tax purposes. See Nontaxable Exchanges, later. Also, a loss from the disposition of property held for personal use is not deductible. Interest in property. The amount you realize from the disposition of a life interest in property, an interest in property for a set number of years, or an income interest in a trust is a recognized gain under certain circumstances.