The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. See Publication 15, Circular E, Employer's Tax Guide. You operate a plumbing business and use the cash method of accounting. You join a barter club and agree to provide plumbing services to any member for a specified number of hours. Each member has access to a directory that lists the members of the club and the services available.
Members contact each other directly and request services to be performed.
You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. If you are involved in a bartering transaction, you may have to file either of the following forms. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. Form 1099-MISC, Miscellaneous Income.