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To: TobagoJack who wrote (2858)	4/6/2001 12:16:18 AM
From: Monty Lenard	Read Replies (1) \| Respond to of 74559

If he is US then his reported income is the FMV of the payment received. Sorry but that is the way it is. Your gain or loss would not apply to US. Your cost has no bearing on his income. Monty BTW, IRC Sec 83...Reg 1.83 :-))

To: TobagoJack who wrote (2858)	4/6/2001 12:31:34 AM
From: Monty Lenard	Read Replies (3) \| Respond to of 74559

And more... CCH-EXP, CCH Federal Tax Service §A:5.174 143 Reg. § 1.61-2(d)(1). EXAMPLE 1: A lawyer performs legal services for a painter, who paints the lawyer's house in exchange. The lawyer must include in income the value of the housepainting, and the painter must include in income the value of the legal services.144 And.....(substitue the word "gold" for "property" since gold is not a currency ...therefore, a commodity or property. FINAL-REG, FTS-REGS , §1.61-2. Compensation for services, including fees, commissions, and similar items d) Compensation paid other than in cash --(1) In general. Except as otherwise provided in paragraph (d)(6)(i) of this section (relating to certain property transferred after June 30, 1969), if services are paid for in property, the fair market value of the property taken in payment must be included in income as compensation. If services are paid for in exchange for other services, the fair market value of such other services taken in payment must be included in income as compensation. If the services are rendered at a stipulated price, such price will be presumed to be the fair market value of the compensation received in the absence of evidence to the contrary. For special rules relating to certain options received as compensation, see §§1.61-15, 1.83-7, and section 421 and the regulations thereunder. For special rules relating to premiums paid by an employer for an annuity contract which is not subject to section 403(a), see section 403(c) and the regulations thereunder and §1.83-8(a). For special rules relating to contributions made to an employees’ trust which is not exempt under section 501, see section 402(b) and the regulations thereunder and §1.83-8(a).