Last updated: February 26 2013
Many taxpayers are shocked to learn that the bushel of apples, gaggle of geese, or services of great variety, paid to settle a debt instead of cash, all have a commercial value that may have tax implications.
Such receipts are income to the recipient and may be deductible by the presenter and so require valuation. The onus of proof is on the taxpayer to justify that value on the tax return, too. Be sure to keep records of market pricing and other evidence of valuation, throughout the year.