Comments on: Timebanks: What are Timebanks and how do they work?

By: What’s Sizzling? – August 21st Edition

What’s Sizzling? – August 21st Edition — Sun, 11 Oct 2009 16:27:42 +0000

[...] Highway introduced us to Timebanks this week. Regrettably, there isn’t one in my area, but this is a fantastic [...]

By: JoeTaxpayer

JoeTaxpayer — Sat, 22 Aug 2009 17:22:16 +0000

I withdraw my remark. Read a bit more on the site and it seems Timebank has a private letter ruling that since there is no value put on the time, it’s not quite bartering. http://www.timebanks.org/documents/IRSRuling-TimeDollars.doc

In this system, time is time, so if you want to do plumbing for an hour, you can get an hour of someone else’s time. Interesting idea.

By: Michael - The Fat Loss Authority

Michael - The Fat Loss Authority — Sat, 22 Aug 2009 14:35:21 +0000

Interesting concept…
I’m kind of disgusted at the idea that it could be taxed but then again abuse of the system would probably be very prevalent.

Mike

By: Weekend Reading – August 21, 2009 | Financial Freedom

Weekend Reading – August 21, 2009 | Financial Freedom — Fri, 21 Aug 2009 11:07:33 +0000

[...] Financial Highway explains the concept of time banks. [...]

By: Ray

Ray — Thu, 20 Aug 2009 20:57:49 +0000

Thanks guys!! I was not aware of that!

By: Erick

Erick — Thu, 20 Aug 2009 20:56:01 +0000

Although quite a bit more long-winded, CRA has same expectation as the IRS in terms of their cut…they even use the same dentist/plumber example:

http://www.cra-arc.gc.ca/E/pub/tp/it490/it490-e.html

By: JoeTaxpayer

JoeTaxpayer — Thu, 20 Aug 2009 17:15:52 +0000

Of course I do.
But here’s our IRS view;
http://www.irs.gov/taxtopics/tc420.html

By: Ray

Ray — Thu, 20 Aug 2009 17:11:25 +0000

Thanks Joe, thats an interesting point. While I was researching it I never came across any taxation issues, but I can see how the IRS or CRA would want a cut of that. I can not see how they would tax a service provided for $0…any ideas?

By: JoeTaxpayer

JoeTaxpayer — Thu, 20 Aug 2009 17:04:28 +0000

In the states (I don’t know about other countries) this is barter, and a bit more sophisticated than just 2 people swapping time. I believe it’s taxable, and with such an organized system, I’d think the IRS would be all over it. I (assume I am a pro) do your electrical work, and you do my plumbing, the IRS wants a cut. Well two, really.