Virtual Economies Attract Real-World Tax Attention

doug141 writes to point out a Reuters story on the attention tax authorities are beginning to focus on virtual economies. From the article: "Users of online worlds such as Second Life and World of Warcraft transact millions of dollars worth of virtual goods and services every day... People who cash out of virtual economies by converting their assets into real-world currencies are required to report their incomes to the U.S. Internal Revenue Service or the tax authority where they live in the real world... 'Right now we're at the preliminary stages of looking at the issue and what kind of public policy questions virtual economies raise — taxes, barter exchanges, property and wealth,' said Dan Miller, senior economist for the Joint Economic Committee of the U.S. Congress."

Well

[Kelz]

Given that it is against the Terms of Service in WoW to exchange in-game currency or items for real life currency or items, I can't see that there would be any legal standing here.

Also, I believe Second Life's ToS [secondlife.com] explicitely states that Linden dollars have no legal value, also trumping any sort of tax law.

But then, neither was the income tax...

Gov't Regulation

[DrWho520]

Dear God, no! Not that! Engineers will never be able to keep up with the Alchemist or Taylor lobbiests!

Losses

[mugnyte]

  Any time I'm due to pay taxes, I'm going to claim a loss on my virtual accounts to balance it out. Wheee!

Time for a new Classes and professions

[LiquidCoooled]

Lawyers, Tax inspectors and accountants.

Myself, I am a level 47 beancounter, I defeated the IRS during a daring raid. Many of my friends died in this battle :(

Given that most gold farmers appear to be Chinese.

[Channard]

.. I don't think this will have as much impact as they think.

Re:A joke?

[Anonymous Coward]

No, they'd probably lock you up for real. Oh, and it'll be really fun to think of just how many ways they will be able to not understand. "Your job is killing things...?...So...would you say you're a danger to society?" "No! It's a game!" "Ohhhh killing things is a game I see...."

Divide By Asshat Error, Please Reboot The Country

Re:Congress strikes again

[IAmTheDave]

"Gimme gimme gimme gimme gimme gimme..." "But I um, actually stole this money off of that old lady that I just shot in the skull..." "28% bitch! Gimme gimme gimme gimme gimme gimme..."

Mod parent insightful

[davidwr]

He's wearing a Helmet of Insight +5.

Re:Finally.

[Typhon100]

• You really don't have to worry about that... you don't get taxed on things as they increase in value, just when you cash out on them (imagine buying a rare baseball card; as it increases in value you don't have to pay taxes on that)
• Where are these boars that drop 200g!?!?