If a landlord gives a discount on rent for services provided by the tenant, the full amounts must be reported. The normal rent must be reported, the discount may be claimed as an expense by the landlord and business income by the tenant. For example, say rent is $900 and the landlord offers $100 to shovel the walk to a tenant. The full $900 must be claimed as rent revenue, $100 as an expense by the landlord, and $100 business income by the tenant.
