You might not have been serious, but you do it on a cash basis. You calculate the cash value of the corn and the lard. Your income is the higher value, and your cost basis is whichever one you gave up, leading to either a profit or a loss. Talk to a tax professional for the rules regarding your ability to write off losses (if you were the losing party) - it isn't automatic or complete.
You might not have been serious, but you do it on a cash basis. You calculate the cash value of the corn and the lard. Your income is the higher value, and your cost basis is whichever one you gave up, leading to either a profit or a loss. Talk to a tax professional for the rules regarding your ability to write off losses (if you were the losing party) - it isn't automatic or complete.