Taxing virtual money

Right! Just one more blogpost while I’m eating my dinner and then I’ll definately get the required 5 pages done before I retire for the day!!!
Julian Dibbell has recently published an article about the IRS and economic gains of virtual trading! The guy (he’s such a cool nerd) actually went to his local tax office to figure all this out! And I have to say…taxes has never been more interesting to me! There are some really wild precedents! One was involved with a gambler who had been given a $500,000 relief from his debt to a casino…now…should he have to pay taxes on that money? For he has actually been given a gift of $500,000! I find these things interesting!!

So my thoughts are basically that you shouldn’t have to pay taxes for sales or profits under a certain amount…I don’t know…$100,000? But I’m also wondering…if you have to pay taxes on your ‘real’ world profits…won’t that make you more traceable to the game producers and eventually get you banned (if the EULA bans trading of course)?! So…it’s not exactly that attractive to sell virtual money and items for ‘real’ money, does that mean that the novelty will wear off? Hmmm…just thinking out loud!!

Now…time to get back to business!!!

PS…picture stolen from Kotaku

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