7 ms·

Cool site! If I signed up for it, and exchanged my web development services for e.g. someone painting my house, I wonder how I'd settle that with my government.

by bybjorn 12y ago

Cool site! If I signed up for it, and exchanged my web development services for e.g. someone painting my house, I wonder how I'd settle that with my government. Just doing it, and not writing it up as something taxable would be illegal, so do one just make up an amount and then pay the taxman a % of that amount?

conception 12y ago
http://www.irs.gov/taxtopics/tc420.html http://www.irs.gov/taxtopics/tc420.html You report it as income, yes.
- johnchristopher 12y ago
  Wait: http://besttimebank.org/Links/Time%20Dollar/IRS%20Ruling.htm http://besttimebank.org/Links/Time%20Dollar/IRS%20Ruling.htm The IRS has issued three local rulings that Time DollarsT are tax exempt. They have given three reasons for this status. 1. An hour is always an hour, regardless of what is offered 2. They are backed only by a moral obligation and are not legally binding 3. Their purpose is charitable. edit: Q: Are TimeBank Hours taxable?[0] A: No. In several cases TimeBank Hours have been ruled tax exempt by the IRS because an hour is always valued at one hour. There is no legal responsibility on anyone's part to redeem a TimeBank Hour, and the purpose of TimeBank Hours is charitable. Read the IRS rulings here[1]. And more articles here[2]. At some point this could be challenged and we think we have a great case to make that our time spent helping one another should not be taxed. [0] http://danecountytimebank.org/faq http://danecountytimebank.org/faq [1] http://assets.danecountytimebank.org/IRS_TimeDollar_Rulings.doc http://assets.danecountytimebank.org/IRS_TimeDollar_Rulings.... [2] http://actionhub.timebanks.org/taxonomy/term/72 http://actionhub.timebanks.org/taxonomy/term/72
  - gohrt 12y ago
    This is very different from Bliive, which is a barter program, not a one-directional donation program.
    - johnchristopher 12y ago
      No, bliive is more like a mutual credit system than a barter program.
- lucb1e 12y ago
  Report it as income? How would that work? > Please enter last month's income 193 hours > That will be 47 hours in taxes, please.
  - loucal 12y ago
    iirc it is based on whatever the irc considers fair market value for the service. I couldn't find the spot on irs.gov where I read that in the past but there is this link that gives an example and mentions FMV http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Barter-Exchanges http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ... edit actually the info is in the first paragraph of that other tc420 link.
_almosnow 12y ago
How would it be illegal for someone to paint your house for free?
- PublicEnemy111 12y ago
  its not free; he's bartering. "Topic 420 - Bartering Income" http://www.irs.gov/taxtopics/tc420.html http://www.irs.gov/taxtopics/tc420.html
- bdcravens 12y ago
  You misread parent; they asked if not reporting it would be illegal, not the painting itself.

by bybjorn 12y ago

conception 12y ago

http://www.irs.gov/taxtopics/tc420.html http://www.irs.gov/taxtopics/tc420.html You report it as income, yes.

johnchristopher 12y ago
Wait: http://besttimebank.org/Links/Time%20Dollar/IRS%20Ruling.htm http://besttimebank.org/Links/Time%20Dollar/IRS%20Ruling.htm The IRS has issued three local rulings that Time DollarsT are tax exempt. They have given three reasons for this status. 1. An hour is always an hour, regardless of what is offered 2. They are backed only by a moral obligation and are not legally binding 3. Their purpose is charitable. edit: Q: Are TimeBank Hours taxable?[0] A: No. In several cases TimeBank Hours have been ruled tax exempt by the IRS because an hour is always valued at one hour. There is no legal responsibility on anyone's part to redeem a TimeBank Hour, and the purpose of TimeBank Hours is charitable. Read the IRS rulings here[1]. And more articles here[2]. At some point this could be challenged and we think we have a great case to make that our time spent helping one another should not be taxed. [0] http://danecountytimebank.org/faq http://danecountytimebank.org/faq [1] http://assets.danecountytimebank.org/IRS_TimeDollar_Rulings.doc http://assets.danecountytimebank.org/IRS_TimeDollar_Rulings.... [2] http://actionhub.timebanks.org/taxonomy/term/72 http://actionhub.timebanks.org/taxonomy/term/72
- gohrt 12y ago
  This is very different from Bliive, which is a barter program, not a one-directional donation program.
  - johnchristopher 12y ago
    No, bliive is more like a mutual credit system than a barter program.
lucb1e 12y ago
Report it as income? How would that work? > Please enter last month's income 193 hours > That will be 47 hours in taxes, please.
- loucal 12y ago
  iirc it is based on whatever the irc considers fair market value for the service. I couldn't find the spot on irs.gov where I read that in the past but there is this link that gives an example and mentions FMV http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Barter-Exchanges http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ... edit actually the info is in the first paragraph of that other tc420 link.

_almosnow 12y ago

How would it be illegal for someone to paint your house for free?

PublicEnemy111 12y ago
its not free; he's bartering. "Topic 420 - Bartering Income" http://www.irs.gov/taxtopics/tc420.html http://www.irs.gov/taxtopics/tc420.html
bdcravens 12y ago
You misread parent; they asked if not reporting it would be illegal, not the painting itself.