China cracks down on virtual cash

[OdessaSilverber]

Originally Posted by WillWren

Technically in the US you have to pay taxes on any income, ill gotten or not. If you make a prfit in EU and you are a US citizen you should pay taxes on it. The question I think for accountatns and policy makers is when do you pay the taxes? And as what kind of entity?

Originally Posted by chevrons

Perhaps withdrawals from EU could be taxed as 'Payments for Services', provided by a participant to MA (as opposed to vice versa)?

Originally Posted by roughrider

I'm for the Swedish way of doing it. If the cash is in the game its non taxable. You only pay tax on the amount that you withdraw.

I'll put the quotes together, as they are same topic.

@WillWren: That's not only the case in the US, that's in EU to. And basically everywhere. However, if you sell a Mod FAP for 200.000 PED, you haven't made a profit...yet. Your money is still "hypothetical". If MA would close down today, you wouldn't see a cent from it.

It's same as if you own shares of a company and bought the shares shares valued 10.000 USD, then the price of the shares skyrockets to 5x time the price you bought it off. You won't have to pay taxes for the "40.000" USD you made. Would be hilarious otherwise, to pay for something you haven't received yet. Becuase there are several things you have to take into account. You would have first to find someone to sell this.

However, you still have to report it to your taxing organization. This 50.000 USD in shares is your capital, not profit (yet). For this 50.000 in shares you get dividends (similar to interest if you put your money on a bank account). This dividends/interests HAVE to be taxed! Because they ARE profits for you (you get then cashed out and either spend it or buy more shares from it).

Same goes if you sell your shares, THEN you have to tax the profits (sellprice-buying price, i.e. 50.000$-10.000$ = 40.000$ in this case. The 40k USD have to be taxed, but only at the point you really sell it).

You simply can't tax something you haven't earned. 1 Year later your shares could be only worth 5.000 USD (hence a netloss of 5.000$ as you bough them for 10.000). So it wouldnt make sense to lose money twice (taxes on 40.000 you "theoretically" profit the year before) and -5.000 you lost because the price of your shares droped down (such as funcoms for their Age of Conan Epicfail :P).

[darth_bacon4]

Originally Posted by Wollongong

First paragraph of the article.

Didn't MA claim EU wasn't a game, but a Universe?

Problem solved.

LOL! so thanks to a technicality china is saved!

[Igorl]

Originally Posted by Wollongong

First paragraph of the article.

Didn't MA claim EU wasn't a game, but a Universe?

Problem solved.

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Quote wiki: http://en.wikipedia.org/wiki/Universe

The broadest definition of the Universe is found in De divisione naturae by the medieval philosopher Johannes Scotus Eriugena, who defined it as simply everything: everything that exists and everything that does not exist.

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You can your dog "Goldshitter", im positive it wont make it shit gold.

I.

[dilly]

Originally Posted by chenle

you have a good sense of humor.FreshwaterCord NylonNylon ThreadAventurine ChrysopraseChrysoprase Aventurine

GTFO