Taxing Virtual Gaming Assets

rijit writes " It appears very likely that taxation of online games assets is inevitable. Quote: '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.' "

Oh, I know.

[AltGrendel]

Since they are taxing virtual goods, we'll pay with virtual money.

If we don't pay

[Weaselmancer]

Will they put our characters in a virtual debtor's prison?

Sign Up

[lupine_stalker]

One last step remains before you can step into our magical world, forgetting your mortgage, your car loan, and your family commitments. Just pick up form number 34C-XCVII from your local tax office, and let the fun begin. The are only two things that are certain in MMO's of the future: Ganks and taxes.

Yes! Sim CPA

[FlopEJoe]

Now I can implement an idea I've had back when the Sim-X and Y-Tycoon games came out... Sim CPA. You too can play in the exciting CPA world. Manage end of the quarter forms for online players in this RTS game. Bonus points for keeping two sets of books and making a little on the side. But don't get caught or you're character will be stuck in virtual jail.

No Taxation without Representation!

[mmdog]

Thrall for Senate from the great state of Durotar!

Re:If we don't pay

[LordEd]

Your character will be transferred from your originating game to the federal pound-me-in-the-ass prison game for a 6 month subscription. Unfortunately, the conjugal visit expansion will not be available anytime soon.

Real taxes for online gaming...

[roscocoltran]

THAT makes those games more realistic than even the latest 3D engines!

Re:Oh, I know.

[Lord_Slepnir]

And watch the Warcraft economy get even more ruined when the IRS tries to convert their gold to cash.

To: Seren

From: IRS dude

Subject: $$$ GOLD NOW!!!

Go to www.irs.gov/warcraft for the LOWEST WARCRAFT PRICES GOLD PRICES EVER! Rates as low as $9.47 for 100 gold! Amazing!

hmmm...

[aliendisaster]

I wonder if I can get welfare for my lvl 2 priest?

Re:Monopoly Rent IS Next?

[Anonymous Coward]

If you are playing Monopoly, you should now expect to pay for antitrust litigation as well.

Expenses

[Anonymous Coward]

Can I claim expenses on potions and weapons and things I require to play the game?
Also, if I slay an opponent and claim his belongings, will I have to pay inheritance tax?

Let them sell then

[Orange Crush]

If the IRS really wants to tax these virtual goods, they should explicitly allow for their sale. i.e. have a Blizzard-sanctioned marketplace to trade virtual goods for real money, document the transaction, and send the necessary paperwork (1099, i'd guess). People who earn their own stuff don't have to worry about it, as only the real-currency sale is relevant.

That's ok

[Weaselmancer]

The conjugal visit expansion would confuse most online gamers anyways.

How about a fucktard tax?

[0123456]

With idiotic ideas like this around, the IRS would be raking in trillions...

Re:Oh, I know.

[Fozzyuw]

Since they are taxing virtual goods, we'll pay with virtual money.

God, and I thought playing was like a 2nd job before! Now, I'll have to farm gold to actually pay for my game! hehe

So, can my character have some fast food hats and aprons for when I'm working to pay my virtual tax?

Cheers,
Fozzy

Re:That's ok

[Fozzyuw]

The conjugal visit expansion would confuse most online gamers anyways.

Nah, they'll just complain that the expansion 'ruined' the original game by forcing people grind even more than they where doing before without adding any real content. They'll also say it's unbalanced as not everyone will be able to experience the new content unless your hardcore!

Re:If we don't pay

[I Like Pudding]

Your character will be transferred from your originating game to the federal pound-me-in-the-ass prison game for a 6 month subscription.

But I already have an Everquest subscription!

Re:Unemployment and Social Security Benefits?

[LurkerXXX]

Am I running a "business" -- and can I hire in-game "employees" ?

Yes, but be careful not to hire too many. If you hire more than 14, you will have to provide them with virtual health insurance. And the rates on virtual disability insurance are just crazy. All that hacking and slashing...

One out of three

[seniorcoder]

The only things that are inevitable are virtual birth, virtual death and real taxes.

Re:Oh, I know.

[electr01nik]

If they want to collect my virtual money, they will need to make an IRS guild with IRS tax collector characters in game to come and get it.

- You slay the Orc
- You pick up 400 gold
- You see a Tax Fairy teleport in front of you
- The Tax Fairy steals 4 gold
- The Tax Fairy disappears

Adjust for your game accordingly, but the Tax Fairy remains.

Re:Taxes suck, but why not?

[theghost]

In the spirit of the source article...

Screenshots or it didn't happen.

Re:Be careful if you live in FL

[pizzaman100]

Which brings up the inevitable ... if you have gawdawful item of unlordly worth and you lose it by say dying in game can you write it off on your taxes.

Maybe your virtual dependents could collect Social Security.