If there was an exchange, there was consideration, and this seems more like a barter, not a free give-away. I bet a good lawyer could have made a case for you.

If there was an exchange, there was consideration, and this seems more like a barter, not a free give-away. I bet a good lawyer could have made a case for you. I believe the IRS would consider the advertising to have some monetary value, which is what your gross profit fee would be based on. The fair market value of goods and services received in exchange for goods or services you provide must be included in income in the year received. http://www.irs.gov/taxtopics/tc420.html http://www.irs.gov/taxtopics/tc420.html