[bybjorn]

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]

http://www.irs.gov/taxtopics/tc420.html

You report it as income, yes.

[johnchristopher]

Wait: 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

[1] http://assets.danecountytimebank.org/IRS_TimeDollar_Rulings....

[2] http://actionhub.timebanks.org/taxonomy/term/72

[gohrt]

This is very different from Bliive, which is a barter program, not a one-directional donation program.

[johnchristopher]

No, bliive is more like a mutual credit system than a barter program.

[lucb1e]

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]

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-Employ...

edit actually the info is in the first paragraph of that other tc420 link.

[_almosnow]

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

[PublicEnemy111]

its not free; he's bartering.

"Topic 420 - Bartering Income" http://www.irs.gov/taxtopics/tc420.html

[bdcravens]

You misread parent; they asked if not reporting it would be illegal, not the painting itself.