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Julian Dibbell has an interesting piece in the Jan/Feb issue of Legal Affairs where he explores the idea of whether the trading of virtual "goods" in virtual worlds could constitute an income-generating, and therefore, taxable exchange under the IRS rules of barter. This may sound ridiculous on the face of it, but because virtual world goods now have real-world market values, there is a legal argument here (albeit an unsettling one for anybody who plays online multiplayer games or hangs out in SecondLife). The good news is that, when he pursued the question with IRS officials, they cocked their heads to the side like dogs hearing a high-pitched noise, i.e. don't expect to see 1099 forms shipping with multiplayer games anytime soon.
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| IRS to Tax Your World of Warcraft Booty? | Login/Create an account | 1 Comment |
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Re: IRS to Tax Your World of Warcraft Booty?
(Score: 1)
by mudd1 on Jan 06, 2006 - 05:22 PM
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Well, maybe not before. But now that someone's planted the idea in their head...
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