Bartering Services Question

[Lyss]

This is kind of a weird situation. Long story short, I have a client who offered to spilt a private school spot between her daughter and mine. So my daughter would go 2 days a week and hers would go three.

Basically the trade would be my daycare services for her child on the days my daughter goes to school plus to/from transportation of her oldest and my daughter 1 day a week in exchange for her covering tuition and after school fees. She would also transport one of the two days (her oldest goes 5 days in the kindergarten program, my daughter and her youngest would split a spot in the prek class.)

So my question is... is there a way to claim bartered services? What about the meals served to her child and the mileage? Or no? I'm thinking it's probably a no but it doesn't hurt to ask

Thanks!

[LysesKids]

This is kind of a weird situation. Long story short, I have a client who offered to spilt a private school spot between her daughter and mine. So my daughter would go 2 days a week and hers would go three.

Basically the trade would be my daycare services for her child on the days my daughter goes to school plus to/from transportation of her oldest and my daughter 1 day a week in exchange for her covering tuition and after school fees. She would also transport one of the two days (her oldest goes 5 days in the kindergarten program, my daughter and her youngest would split a spot in the prek class.)

So my question is... is there a way to claim bartered services? What about the meals served to her child and the mileage? Or no? I'm thinking it's probably a no but it doesn't hurt to ask

Thanks!

Is what your dd is getting from having preschool paid (inc ride) equal to the childcare services you will be providing (inc ride) or is the value unequal? You have to look at it from a money valuation because that's how it will be taxed on your 1040 if I'm not mistaken

[TomCopeland]

bartering

This is kind of a weird situation. Long story short, I have a client who offered to spilt a private school spot between her daughter and mine. So my daughter would go 2 days a week and hers would go three.

Basically the trade would be my daycare services for her child on the days my daughter goes to school plus to/from transportation of her oldest and my daughter 1 day a week in exchange for her covering tuition and after school fees. She would also transport one of the two days (her oldest goes 5 days in the kindergarten program, my daughter and her youngest would split a spot in the prek class.)

So my question is... is there a way to claim bartered services? What about the meals served to her child and the mileage? Or no? I'm thinking it's probably a no but it doesn't hurt to ask

Thanks!

You have to treat bartering as if money changed hands. So, you would have to report as income the amount you would have been paid for caring for this child. She would have to report as income the amount she would have received from you. The transportation would be included in the amount this service is worth.

[Lyss]

Is what your dd is getting from having preschool paid (inc ride) equal to the childcare services you will be providing (inc ride) or is the value unequal? You have to look at it from a money valuation because that's how it will be taxed on your 1040 if I'm not mistaken

Yes, it's pretty equal. This was the first thing I figured out. I love this family and I don't want either of us to feel taken advantage of.

You have to treat bartering as if money changed hands. So, you would have to report as income the amount you would have been paid for caring for this child. She would have to report as income the amount she would have received from you. The transportation would be included in the amount this service is worth.

Ok. That makes sense! Thanks!