Tax adviser in exchange for free rent?

The only time that "free" rent is not taxable income to the tenant is when occupancy of employer-provided quarters is both a condition of employment and for the benefit of the employer.

For example, a maintenance person who works for an apartment complex is required to perform services out-of-hours as needed. He is required to live in the complex in order to reduce response times so his employer gives him a free apartment. Since this is a condition of employment and is for the benefit of the employer, the fair market value of the apartment is NOT considered income to the employee. The employer does not get any deduction for the rent not received, but still can deduct the costs related to the apartment (utilities, maintenance, depreciation, insurance, property taxes, etc.).

In your case, the unit provided to the tax adviser is taxable income to him. You include the fair rental value of the unit on any Form 1099-MISC that you give him and he reports it as if it had been paid in cash. Your deduction is limited as noted in the example above. You don't get a "deduction" for rents not received.

Shouldn't the tax advisor be able to answer this for you? The FMV of the rent is going to be income to the guy. Look online under bartering since this is what you are doing.