Quote:
Originally Posted by HarryT
I honestly can't see how an undertaking to write a review in exchange for a book can't be considered a barter. But that's probably why I'm not a tax lawyer  . |
The questions might come in, off the top of my head, in one of two places:
1. Was the book REALLY given as payment for a service? Or was it a gift, or some other type of low-value promotional item, maybe with the unofficial hopes of getting a review? Even if the reviewer says they got the book "in exchange for the review" that may not be how the publisher, or the IRS sees it.
2. Is there 300 pages of obscure exceptions, exemptions, exclusions and etc. buried in the tax code somewhere that effectively trickles down to the typical tax preparer as "you don't need to declare that."
Unfortunately (or fortunately depending on your point of view) , when the amount is so small as to be really questionable, it's also too small to be worth anyone researching an authoritative answer.
People will either declare it, because it probably amounts to less than the price of a cup of coffee in taxes, or the don't declare it because they figure it's unlikely to flag an audit since it involves less than the price of a cup of coffee....