N.B. §104(a)(2) – non-punitive damages are excludible under “compensation for injuries or sickness” section. Part of “made-whole” concept from Torts.
Property transfers – §83 – property transferred for performance of services is still income.
Exchange of services – Rev. Rul. 80-52 – A and B exchange services worth $200. Credit units can be used immediately and there are no restrictions. Each has $200 of gross income.
Baker v. Commissioner – argument that in barter club members inflated prices was rejected. If members accepted prices, that is what is taxed. Taxpayers treated trade units as having dollar equivalency.