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The Virtual Taxman Cometh
Of interest to gamers and possibly metafandom-types:
Wired looks into the issue of whether taxation of income and holdings (real and personal property) in virtual worlds like WoW and SecondLife can, should and/or will be taxed by the IRS in the US, or, I guess, similar taxation entities in other countries.
Some questions arise, to my mind, about things like virtually-existing charities - can a rreligious entity, like a church, exist wholely in SecondLife? Helping those who are homeless in WoW itself probably wouldn't pass 501(c)(3) muster, and running for an office in an online government wouldn't need the same FEC reporting rules as public office candidates but it likely would if the site was hosted by a local, state or federal government. But a scholarship fund to benefit players in funding educational courses at an online school like Phoenix University might merit 501(c)(3) status.
Wired looks into the issue of whether taxation of income and holdings (real and personal property) in virtual worlds like WoW and SecondLife can, should and/or will be taxed by the IRS in the US, or, I guess, similar taxation entities in other countries.
Some questions arise, to my mind, about things like virtually-existing charities - can a rreligious entity, like a church, exist wholely in SecondLife? Helping those who are homeless in WoW itself probably wouldn't pass 501(c)(3) muster, and running for an office in an online government wouldn't need the same FEC reporting rules as public office candidates but it likely would if the site was hosted by a local, state or federal government. But a scholarship fund to benefit players in funding educational courses at an online school like Phoenix University might merit 501(c)(3) status.
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I just like the idea of the IRS taxing virtual holdings and income. It reminds me of the guy who got a speeding ticket along with a letter and a photograph of his car taken by an automated speeding-control camera. He sent them a photocopy of a payment check. :D
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The IRS should tax real-world sales of virtual assets, though. So if you're in the business of buying and selling level 60 characters for actual cash, sure. But until there's a real-world cash transaction, the value is strictly theoretical. In this respect, it's like stocks; the IRS can tax capital gains when you sell, but not the rise and fall of the stock en route to the sale.
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If you make "real" money, you'd have to file papers as an Independent Contractor, I thinks. Then you could be taxed as a person.
Virtual taxes? What, to enrich the owners of the games we're already paying for? What's next, 60.00 XBox Games full of ads for....oh. Never mind.
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