QUESTION: What are the tax implications when services and services in return are offset against each other? (I put a new roof on your house and you install new windows in my house). Are the benefits calculated in terms of money, and then both parties are taxed?
ANSWER: It does not matter whether the benefits are received in the form of money or benefits in kind. If the conditions are otherwise met, all benefits gained through work, capital or enterprise will be considered taxable income.