1

really?

Submitted by jess on January 19, 2008 - 14:24.

"#5 Use barter and the informal economy. If your neighbor hires you to help him create a website and you hire him to help you cut down a diseased tree next to your driveway, you both owe income taxes on whatever you're paid. If you instead swap these services informally, you still owe the taxes, but you're expected to declare the income at its fair market value. It's perfectly reasonable, though, to declare the income at what the service would have been worth the previous year."

you still have to pay taxes if no money was exchanged? what happened to doing each other favors?

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