Author Topic: Lodging exchanged for work- taxable income? MAGI?  (Read 111 times)


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Lodging exchanged for work- taxable income? MAGI?
« on: September 06, 2017, 11:57:09 AM »
Please help me understand the taxes involved in the following arrangement -

A 501(c)(3) organization owns property & would be trading lodging on the property to an individual for services rendered related to the org's mission/taking place on that property.


1) Does the FMV of rent get taxed as income earned by the individual?
1a) If yes, does that income amount count toward MAGI for calculating individual's health care eligibility?
1b) If no, does that mean there are no payroll obligations (SSI, unemployment, etc.)? Does individual need W-2?

2) Is there a way to arrange things so individual is not considered an "employee" for tax and other legal purposes?
2a) If individual is classified as independent contractor or other (tenant? volunteer? etc.), does that affect ability to fall under "convenience of the employer" exemptions from taxable income under barter rules?

Thanks in advance for your help.
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