MIndark the JEC,IRS,CIA and you? - Page 2

SeamusO · 02-28-2008, 06:26

GBE, they know what to tax, they just haven't figured out a way to track it .. hence the

Quote:

Originally Posted by seamuso

IRS = still trying to figure out a way to tax MMO avatar earnings

I don't think I'll have to worry to much about the IRS and my ingame income too much ..

.. The current total sum of my wealth is about 80ped, 15k fruit and 10k dung ..

GBE · 02-28-2008, 06:30

Quote:

Originally Posted by zappen

Lets say you bought a stamp some years ago and then sell it and make a profit for it do you in the US need to report that income?

Yes, as long as it is not a di minimus amount (excuse the spelling). You must report income from any source derived. The government is not going to let you make money on something without getting their hands on it. This is the way that I understand it, anyone feel free to correct me. Gambling income also has to be reported but is generally taxed at a higher rate and gambling losses can only be claimed to offset gamling wins. Ideally you would want ro report things as capital gains first, regular income, then gambling (if what you have qualifies) because of the amount you will be taxed on these.

* I am by no means an accountant so anyone can feel free to correct any portion of this, this is the way that I understand it

GBE · 02-28-2008, 06:33

Quote:

Originally Posted by SeamusO

GBE, they know what to tax, they just haven't figured out a way to track it

Sorry Seamus wasn't trying to say you were wrong just pointing it out because a lot of people often think that just because it isn't "regular earnings" they dont have to report it which could lead them to a lot of headaches. I get what ya mean now.

timmmers · 02-28-2008, 07:26

Quote:

Originally Posted by GBE

Yes, as long as it is not a di minimus amount (excuse the spelling). You must report income from any source derived. The government is not going to let you make money on something without getting their hands on it. This is the way that I understand it, anyone feel free to correct me. Gambling income also has to be reported but is generally taxed at a higher rate and gambling losses can only be claimed to offset gamling wins. Ideally you would want ro report things as capital gains first, regular income, then gambling (if what you have qualifies) because of the amount you will be taxed on these.

* I am by no means an accountant so anyone can feel free to correct any portion of this, this is the way that I understand it

Gambling income isn't taxed at all in some areas here (poker etc) in the UK. Not on the player side at least. Guys that go over to Las Vegas and win are required to do some paperwork in order to bring it all home untaxed, the poor guys resident there pay simply pay tax.

MA have always said EU isn't gambling, to the satisfaction of the people that matter that seems to be taken to be true....and even if it means getting taxed on what we earn (

can't help laughing there) that's much better than the likely alternative, a ban on some countries being able to participate just like online gaming experienced.

The latest BBC Click programme was about virtual worlds and mentioned that the UK govt is looking into taxing virtual worlds...note the difference, not MMO...considering the amount of business from real companies they expect to take place in future this way it's not really surprising.

Bring in the corporates and right behind them come the governments sadly. Both want our money

If the CIA aren't already sweating in Swamp Camp looking for Bin Laden I'd be very surprised. I have definitely seen James Bond ingame at Argus.

t

Darker_Star · 02-28-2008, 07:58

Yes,

If not mistaken, it's called Capital Gains Tax...

DS

Quote:

Originally Posted by zappen

Even if you make some money in entropia, isn´t it gambling they wanna look into? Not all profits are from the "gambling" side of the game.

Lets say you bought a stamp some years ago and then sell it and make a profit for it do you in the US need to report that income?

aridash · 02-28-2008, 08:40

Quote:

Originally Posted by SeamusO

IRS = still trying to figure out a way to tax MMO avatar earnings

As GBE points out, this is really simple, they tax you when you withdraw. The same as how they tax you when you by shares or as someone said, stamps or any thing else. You dont get taxed on the increased value of the share or stam while you still own it, you only have a tax liability upon sale. Tax man is interested that its not used for fraud or avoidance more than anything else.

There has been no progress on taxation of internet trades dispite 15 years or so of looking at it and many legislators are very hostile towards it. so why are they going to be any different to MMO/virtual worlds? It needs too much cooperation between all nations and they cant even agree on legislation such as Intellectual Property.

SeamusO · 02-28-2008, 14:39

aridash, you didn't read my reply to GBE at the top of the page.

Hardicus · 02-28-2008, 14:52

I've always wondered, if you can pay tax on your gains from EU, can you also claim rebates on your losses?

aridash · 02-28-2008, 14:58

they track it exactly the same way they do if you sell you shares or stamp collection: your bank or broker deals with the tax for you, or you have to declare it under threat of jail if you dont.

as you point out, SeamusO, for most its not an issue since there is a net loss. they dont want to bother tracking that inside the game.

Quote:

Originally Posted by Hardicus

I've always wondered, if you can pay tax on your gains from EU, can you also claim rebates on your losses?

an obvious risk if they start trying to tax within the game. as it is, it would be treated like any other hobby. if you are seen to be acting in a manner to make income, they'll tax you, otherwise they'll turn a blind eye (same as when you buy/sell a car, ebay stuff, car boot etc). If you set yourself up as a business, yes you could claim losses, but you'd have to convince the tax man that you are genuine.