If you trade something, how can that be “income”? Income to whom?
“If you trade something, how can that be income? Income to whom?”
Dracula (IRS) demands that you claim trades as income, period. Each party has earned income as far as Dracula is concerned.
There is supposed to be paperwork/invoices/receipts to track the transaction. Without paperwork it is illegal and never really happened—and I, of course, would NEVER advise doing such a thing.
Paying with money is the same thing as trading an object or service with a dollar value to Dracula.
Another idea for those that sell service along with products is to drop the product price and raise the service price. This is even more important in Taxifornia where the sales tax is 10%. There is no sales tax on services—at least not until the coven in Sacramento gets around to piercing that artery.