I am sitting here at my RL job on my scheduled goof off time and I got to thinking about a few things. A few US dwellers in SL boast about making SL their full-time jobs and I wondered how do they report this RL.
By law, any income above $7,000 per year (I think) has to be reported to the IRS and taxes paid on it. Considering I always itemize my taxes and ALWAYS get a refund for my deductions, I can't say that I have studied this part of the spectrum. How does the SL income play into RL income if the linden is not an official currency?
Ok, granted you convert to USD but is that still considered income? It could probably be considered as a gift, which should be reported as income just like eBay but I don't think there has been any solidified information from the IRS relating to metaverses as of yet.
This was just a thought that I figured I would put on pixels but I will update this as I study the tax code a little more relating to non-taxed income and 1099 statuses...
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I believe it is... I remember reading somewhere about having to report money earned from web stuffs as income, while I was researching on starting a business. I'm Canadian, but our stuff is very close...
And I'm sure if the IRS wanted to, they could easily say you're living a lifestyle that exceeds your income if you didn't.
Open an investigation. Find out you are selling electronic goods.
That's exactly what the linden is... It's not a currency, it's electronic media. If you sell it, you're selling a product.
Interesting thing is, in Canada here, if I was selling lindens..
Heh, this brings up an interesting little tangent. As a Canadian, I don't have to register a company, if I'm doing business with my name. The moment I add anything to it, like & partners, or something like that, I have to register.
So... By that logic... Selling lindens under Tumult Ivanova, I technically have to register a business to do it.
Ah, you are right. The linden would fall under electronic media. Wonder how many people are going to jail for tax evasion this year....
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