1099-B Barter and Exchange Consequences

[tcbplusinc]

When a taxpayer is issued a 1099-B (Barter and Exchange form), is it "always" considered a "taxable" situation?

[Burke]

It is reported on the tax return regardless. If the exchange was for services, it is treated as cash received by both parties and reported as income. (Line 21). If the service was business-related, it would be included in that business' income and possibly subject to SE taxes. (Sche C, E, F, etc.) If it was personal property traded or exchanged, there may be a taxable capital gain, either short-term or long-term, depending on the underlying basis of the property traded. (Sche D).

[David1980]

And if it's stock sold you report that... the gain/loss being determined by taxpayer's basis and price sold.

[taxea]

It is reported on the tax return regardless. If the exchange was for services, it is treated as cash received by both parties and reported as income. (Line 21). If the service was business-related, it would be included in that business' income and possibly subject to SE taxes. (Sche C, E, F, etc.) If it was personal property traded or exchanged, there may be a taxable capital gain, either short-term or long-term, depending on the underlying basis of the property traded. (Sche D).

and if it is business related the business may be able to deduct the amount as an expense after reporting it as income.

[Rapid Robert]

When a taxpayer is issued a 1099-B (Barter and Exchange form), is it "always" considered a "taxable" situation?

Welcome to the forum.

Your question is very open-ended. A form, by itself, does not determine tax treatment, that is what the laws and regs are for. Why don't you give us an example of a 1099-B situation that you think might not be a "taxable"? In other words, what are you really trying to ask?