A friend asks you for some advice since she knows you are taking this tax class.
She has a son who just started college and he is pretty handy. He usually
charges $15 per hour for his services, but is starting to fall behind in his
schoolwork. He has a friend who is willing to tutor him at $20 per hour. They
have come to an agreement that her son and the tutor will exchange “handyman”
services for tutoring services. Explore the tax implications of this arrangement
and whether the $5 per hour difference has any implications. Be sure to be
specific and cite specific concepts.
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