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Publication 17

Chapter 12
Other Income(p89)

What’s New(p89)

At the time this publication went to print, Congress was considering legislation that would do the following.
  1. Provide additional tax relief for those affected by Hurricane Harvey, Irma, or Maria, and tax relief for those affected by other 2017 disasters, such as the California wildfires.
  2. Extend certain tax benefits that expired at the end of 2016 and that currently can’t be claimed on your 2017 tax return.
  3. Change certain other tax provisions.
To learn whether this legislation was enacted resulting in changes that affect your 2017 tax return, go to Recent Developments at


Automatic 6-month extension.(p89)
If you receive your Form 1099 and/or Schedule K-1, reporting your other income, late and you need more time to file your tax return, you can request a 6-month extension of time to file. See Automatic Extension in chapter 1.
You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you don’t include them. Some items, however, are only partly excluded from income. This chapter discusses many kinds of income and explains whether they’re taxable or nontaxable.
This chapter begins with discussions of the following income items. These discussions are followed by brief discussions of other income items.


Useful items

You may want to see:

 525 Taxable and Nontaxable Income
 544 Sales and Other Dispositions of Assets
 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments


Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.
Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead.

Example 1.(p90)

You’re a self-employed attorney who performs legal services for a client, a small corporation. The corporation gives you shares of its stock as payment for your services. You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them.

Example 2.(p90)

You’re self-employed and a member of a barter club. The club uses "credit units" as a means of exchange. It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. The club subtracts credit units from your account when you receive goods or services from other members. You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year.

Example 3.(p90)

You own a small apartment building. In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment.

Form 1099-B from barter exchange.(p90)

If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 15, 2018. It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2017. The IRS also will receive a copy of Form 1099-B.