What is barter income? Barter is the exchange of goods and/or services without the use of currency or money. The IRS requires that barter income be reported.
If there are at least 100 transactions during the year, then you will be required to file a form 1099-B. Under the same rules that apply to business payments of $600 or more to any individual for services, you may be required to file form 1099-MISC.
For example, let’s say you agree to give a contractor a piece of equipment worth $1,200 in exchange for services he performs. You would be required to issue him a form 1099-MISC in the amount of $1,200.