Tuesday, June 26, 2012

Are Time Dollars Taxable?

Great question. The short answer to this is no. The IRS has issued a ruling on Time Dollars (TD$) that says they are not taxable.

But.

(You know there is almost always a "but" in these instances, right?)

But. Time Dollars (TD$) could be taxed, if the IRS saw that there was an equivalency being made between TD$ and US dollars (USD). For example, if my offer said, I will babysit your child for 1TD$ per hour or .5TD$ and $2 per hour, that would be equating Time Dollars with US Dollars. If an equivalency is established, the transaction is considered taxable by the IRS.

In a timebank, the currency is ALWAYS time. One hour is equal to 1TD$. Simple. Of course, you may also charge people for costs you incur in fulfilling a request, but you may NOT charge them anything but TD$ for your time.

For example: Time Trader Susan asks Time Trader John to bake a dessert. John can ask for money (USD) for ingredients. Susan can reimburse him, they can shop together and Susan can pay for the ingredients, or Susan can buy the ingredients using a list John provides her and John can use them to make the dessert. The method in which John is remunerated for the cost of the ingredients is not important as long as both Time Traders agree with it. Susan then pays John TD$ for the time it took him to prepare the ingredients. If the parties agree to it, she may even pay him TD$ for the time he took to shop for the ingredients, but the only USD that are exchanged are for the ingredients.

One more example: Time Trader Elizabeth needs a faucet installed. Time Trader Sam says he can help. Again, the person requesting the service is responsible for the costs associated with equipment and materials for the service, so Elizabeth purchases the faucet and materials needed, and Sam does the installation. Sam then is paid TD$ for the time it took him to do the job.

The same goes for scrapbooks, jewelry making, or any other service: if materials or ingredients are needed, the person receiving the service is responsible for those costs, but the way those costs are handled, as long as both participants in the transaction agree, is immaterial in the eyes of the timebank or the Coordinator.

Again, our currency is time.Our economy, like any economy, is healthiest when the currency moves freely between people. So get out there and make some exchanges. Do something for someone else. Find a service and try it out, just for fun.

But make sure you are only dealing in TD$. Don't establish an equivalency with US currency, because then your transaction, like a bartering transaction, could be considered taxable by the IRS.

Monday, June 18, 2012

The Community Fund

Time Trader has a Community Fund that is listed just like any other member of the timebank. It was established at the very beginning and was originally envisioned as a place where members could donate TD$ and other members could draw from in times when they were unable to earn TD$.

It has worked that way in some cases, when a member had an injury and needed a lot of help. Once the TD$ in their account were used up we turned to the Community Fund to help them receive services they needed until; they recovered.

We have found, however, that the Community Fund serves another purpose; it serves the larger community. Other agencies are learning about Time Trader and they are beginning to turn to us when the need a client has is outside the realm of the agency. In one instance, a woman needed to mow the lawn of her rented home but her lawn mower was broken. Her landlord was expressing concern and she did not have the money to have someone fix the mower or pay someone to mow for her. Time Trader was contacted and a member agreed to bring his mower to her home. Her lawn was mowed, and, as a bonus, the Time Trader was able to repair her mower with a $5 part, which he simply gave to the woman. There is really no other group or agency that could provide that service quickly; despite the fact that many people in our community would likely be willing to perform a service like that, there is no place other than Time Trader that can connect someone who needs a service with someone who is able to perform the service.

In another instance, a person who was new to the community had rented a home that proved to be unsafe. He was recovering from surgery and was unable to move, and for a variety of reasons, his move had to be accomplished quickly. Another community agency contacted Time Trader, and some volunteers went and assisted with the move. Again, this kind of service falls outside of what most agencies can provide.

In situations like this, the request will come through Community Weaver and it will be clear the person is not a member of Time Trader but that the TD$ earned will come from the Community Fund. Often people from the referring agency will be involved in the transaction as well. People who receive this service may later join Time Trader, going through the same orientation and background check as any other member, but if they do not join Time Trader they have no access to any information in Community Weaver.

This is a very important service Time Trader can provide for the Community, and we welcome inquiries from agencies. We are always open to discussion of one-time services as well as organizational partnerships.

Wednesday, June 13, 2012

Time Trader Spotlight: Jennifer C.'s etched glass

From time to time I like to spotlight a Time Trader's skill or talent. Often people have many things they offer in Time Trader, but this feature typically focuses on one particular thing.

Today that thing is glass etching. Jennifer offers a number of creative, crafty things -- she will teach you how to scrapbook, or make a custom scrapbook for you, for example -- but our focus today is on taking a simple piece of glassware and turning it into a treasure.

This is a simple heart-shaped glass bowl. Look how Jennifer turns it into something really special:

She adds the abbreviation for a local high school by etching it into the glass using a stencil and a chemical solution. The other side of the bowl says "Class of 2013." (She's already a year ahead! I should be so organized.)
 And here is one more item -- a wonderful wedding or shower gift. How convenient to have a baking dish with your last name on it -- it's the perfect thing to bring to a Time Trader potluck! And you know you'll always get it back.
And here's a hint from me: there are lots of glass items at the Dollar Store; vases, wine and martini glasses, serving bowls and platters, even individual dinner plates. Just think: for a dollar and a TD$ or two, you can give a memorable, personalized, one-of-a-kind gift.

Thanks for sharing your skill with us in the spotlight, Jennifer. You have earned a TD$ for helping me out.

Any Time Trader can be spotlighted. Contact me with your skill or about a skill another Time Trader has, and if I post the spotlight on the blog you can earn a TD$, too.