You become familiar with IRS Form 8824 if you are involved in bartering or exchanging one product for another. The goal is to have line 24 equal line 19. To the extent that there is any amount on line 24, if your friend gives you a copy of a book and you give him or her a movie in return, no one will care. However, as the value rises increasingly, even the IRS wants to know what your transaction entailed. Lines 12 through 14 need only be completed if your transaction was not actually a "like-kind" exchange. It will only pertain to instances where a higher replacement value takes place after noting the original item's value. This is particularly important for people in any job of power (government or otherwise) to consider. Admittedly, there will be deferral of recognized gain. Note that the form refers the taxpayer to the instructions if a related party is involved in the exchange.
