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Taxing virtual goods in cash sales??

Discussion in 'Off Topic' started by T_Amon_from_work, Jan 12, 2009.

  1. Story link here (ArsTechnica)



    Essentially, some folks are urging the IRS to tax virtual goods when they are bought/sold for RL cash. This is not really a new thing, and the article cites Second Life as an example. But ... near the end, they do mention that this could impact MMORPG's in general.
     
  2. Diomedes Artega

    Diomedes Artega Certifiable
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    Interesting article. Not to change the subject at all, but you know that some states now have an internet tax that is tagged onto your monthly UO subscription.

    Where there is a will, there is a way. Especially with the American economy floundering, the IRS is going to want to get their cut.

    The article seems to imply however that every game has participants and that all of them participate in real life cashing trade activities. At least that is the conception I had from reading the article...and that's completely false of course.

    Maybe if Ms. Olsen reported all of her earnings on her IRS tax return she wouldn't be worried about less relevant things.

    Actually if they quit letting companies ship jobs overseas and get tax breaks they don't really need...we might not be as bad in debt.*sarcasm* Although the Iraq conflict is responsible for a lot of money going bye-bye.

    Anyways, in relation to the article, they could tax a percentage off of the person bidding and away from the merchant. It would do no good to add a tax on to everyone that plays the game since that would penalize those who don't partake in merchandising or buying virtual goods.

    Other than that, it would be very difficult to regulate. I mean they can easily pass bills that have a lot of money that is not needed to be spent through tons of loopholes because the bill is so long it would take someone months just to read the whole thing.

    Ebay auctions...I can see how they would be regulated and relates more to how goods and services are taxed then to virtual goods when characters and such are anonymous.
     
  3. yeah and NY is incorrect for my area. they hit me for 8.25% and it's 8%. I told Jeremy ... filed a b**ch via the web page ... no good.
     
  4. Diomedes Artega

    Diomedes Artega Certifiable
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    Yeah I used to live in Wisconsin and I was shocked the first time I saw that. I am glad to live in a state again where I don't get charged for such penny pinch type taxes. But, I'm not holding my breath I will stay safe... :hahaha: