* * * * *
I suppose play money is next for taxation?
> OK, so I realize I'm getting ahead of myself here, but what exactly do I
> tell the IRS (Internal Revenue Service) next April?
>
> I'm not talking about the amusing but ultimately trivial question of what I
> put down as my job category. (Gold Farmer? Vaporware Vendor? Merchant of
> Dreams?) This is a tougher one, with rather more substantial implications
> both for me and the Ultima Online economy in general. It's the big
> question, in fact, the heart of it all, the only datum, finally, that the
> tax man is really interested in: What, precisely, is my income?
>
Via Kottke's Remaindered Links [1], “ If You Take a Walk I'll Tax Your Feet
[2]”
It is an interesting question whether the Tax Man™ can tax virtual money from
a virtual economy, especially since the virtual economy in question is the
79^th largest in the world [3] (“Yes, you too can earn $3.42 an hour clicking
the mouse!”). I wouldn't be surprised if Uncle Sam doesn't attempt this soon,
especially given this from the IRS (Internal Revenue Service) [4]:
> **Illegal income.** Illegal income, such as stolen or embezzled funds, must
> be included in your income on line 21 of Form 1040, or on Schedule C or
> Schedule C-EZ (Form 1040) if from your self-employment activity.
>
“Publication 525: Taxable and Nontaxable Income [5]”
Blink.
Blink.
If the IRS can say this with a straight face, then it's only a matter of time
they start coming after non-existent money.
[1]
http://www.yoink.org/cgi-bin/mt/mt-comments.cgi?entry_id=3851
[2]
http://www.juliandibbell.com/playmoney/2003_06_01_playmoney_archive.html#105614676623456397
[3]
http://www.wired.com/wired/archive/11.01/gaming.html
[4]
http://www.irs.gov/
[5]
http://www.irs.gov/formspubs/page/0,,id=11916,00.html
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