IRS taxation of online game virtual assets inevitable
NEW YORK--If you are a hard-core player of virtual worlds like World of Warcraft, Second Life, EverQuest or There, IRS form 1099 may someday soon take on a new meaning for you.
That's because game publishers may well in the not-too-distant future have to send the forms--which individuals receive when earning nonemployee income from companies or institutions--to virtual world players engaging in transactions for valuable items like Ultima Online castles, EverQuest weapons or Second Life currency, even when those players don't convert the assets into cash. Rest of the story
Posted by
baci on December 4, 2006 12:40 PM | Permalink
Comments
Should I receive a 1099 form for my virtual property, I'll be sending them back a virtual 1099 form.
Hmm... do you think Mario coins count? Would that go on line 10A (income) or line 15b (capital gains)?
And technically, if I play Vice City (or whatever that game is that runs over cops and pregnant women), that makes me a fugitive. Do I still have to pay taxes, since I'm on the virtual lam? I don't want to be found, so I probably shouldn't send it back.
When it boils down to it, your WoW gold, your Ultima Castles, your Yahoo! casino dollars, your Simoleans, your neopoints and Mario coins are all VIRTUAL. They're not real. You can't cash them in with the company for real money.
(Although I've known people to purchase some of these on ebay, which is covered under an entirely different set of tax laws...)
This is so wrong on so many levels I can't even begin to go further without wanting to spit Uru shards at the government.
Think me and my level 1000 elven dwarf wizard can take 'em?
One last thought: if I'm a Chinese citizen, what are they going to do should I not send in the 1099 form? Send the IRS after me?
Posted by: tamara![[TypeKey Profile Page]](http://archive.perfectduluthday.com/nav-commenters.gif)
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December 4, 2006 06:23 PM