A handyman who did work in exchange for reduced rent has taxable income. For years, he and his family rented a home from a lessor who owned other properties. One year, when the handyman couldn’t pay rent, he and the lessor informally agreed that he’d do maintenance work for the lessor in exchange for a monthly rent offset equal to the value of services that he performed. He’s treated as receiving compensation in an amount equal to the rent reduction (Welemin, TC Summ. Op. 2017-54).