Forum Home
PC World Chat
Thread ID: 75254	2006-12-22 03:01:00	I Told Ya So!	SurferJoe46 (51)	PC World Chat

Post ID	Timestamp	Content	User
508682	2006-12-22 03:01:00	If youse guys are hard-core players of virtual worlds like World of Warcraft, Second Life, EverQuest or There, IRS form 1099 may take on a new meaning for you . Game publishers may in the not-too-distant future have to send the forms . . . . which individuals receive when earning nonemployee income from companies or institutions, commonly called a "self-employed" or "sub-contracted labor" taxable earnings report . . . . 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 . Is that even possible? Governments are beginning to become aware of the substantial economic activity in online games . . . . . . . but the games' rapid growth and the substantial value of the many virtual assets changing hands in them is almost certain to bring them into money grubbing and taxable attention . "Given growth rates of 10 to 15 percent a month, the question is when, not if, Congress and IRS start paying attention to these issues," said Dan Miller, a senior economist with the Congress' Joint Economic Committee, who is also a fan of virtual worlds . "So it is incumbent on us to set the terms and the debate so we have a shaped tax policy toward virtual worlds and virtual economies in a favorable way . " (source: UPI, New York, USA) Miller's comments came during a Saturday panel called "Tax and Finance" at the State of Play/Terra Nova symposium, the fourth annual gathering at New York Law School of academics, lawyers and other scholars to talk about the legal, social and economic issues surrounding virtual worlds . The panel was formed in the context of recent questions . . . . . . first raised by author Julian Dibbel in his book Play Money and in an article he wrote earlier in Legal Affairs magazine . . . . . . about whether the transfer of virtual assets, or players' acquisition of virtual loot by, for example, killing monsters, creates taxable events . "If you haven't misspent hours battling an Arctic Ogre Lord near an Ice Dungeon or been equally profligate spending time reading the published works of the Internal Revenue Service . . . . . . . " Dibbell's article began . . . . . . . "you probably haven't wondered whether the United States government will someday tax your virtual winnings from games played over the Internet . The real question is: Why hasn't it happened already?" And while Miller's committee began examining these issues in October, his comments Saturday suggested there could be wider future congressional oversight and a revised IRS tax policy . . . . . . that's in spite of the fact that Miller said his committee, (and Congress in general), is not out to gouge virtual world players . "The Joint Economic Committee is not seeking to impose a new tax on virtual economies," Miller said . "We have a very clear record of supporting lower taxes in free market . " Meanwhile, Miller's fellow panelists also weighed in Saturday on Dibbel's question, and came at it from several different perspectives . First up was William LaPiana, a wills, trusts and estates professor at New York Law School . He approached the question by examining whether estate taxes would accrue on the transfer to an heir of a sizable collection of valuable virtual assets . LaPiana said that there is little question that the transfer of such assets could be taxable, since it is property (HUH?) . However, he did say that the taxes would accrue only if the total value of the estate's assets, at the time of death, exceeded the limit set by the state in which the deceased had lived . In most cases, he said, that amount is $2 million, though some states, like New York and New Jersey, have lower limits . Is this nuts or what? :lol:	SurferJoe46 (51)
508683	2006-12-22 22:36:00	Is this nuts or what? :lol: Nah, it's just the good old USA. Get out of there mate, before the rest of the world erects an electric fence around the place.	Jester (13)
508684	2006-12-22 23:03:00	Good morning Mr Orc, would you be interested in a Great Sword of Wilting +5? Only 300 gold pieces plus GST! If you make money from gaming in New Zealand you are already expected to pay income tax on it. The easiest way to do this would simply be to pay tax on money sent to you in the financial year you receive it. Taxing virtual economies would cost too much in terms of administration. They are simply too hard to police.	TGoddard (7263)
508685	2006-12-22 23:55:00	I better send 'em off a pile of Monopoly (R) money pronto or I could be ankle deep and inverted.	R2x1 (4628)
508686	2006-12-23 16:25:00	This part: "However, he did say that the taxes would accrue only if the total value of the estate's assets, at the time of death, exceeded the limit set by the state in which the deceased had lived . In most cases, he said, that amount is $2 million, though some states, like New York and New Jersey, have lower limits . " got me to thinking . . . . . <sorry> . . . but $2 million US isn't that much . Own a house in a slightly upscale area . . . $1 . 5 to $2 . 5 right there! Add a couple of not-so-new cars and you're 'way over the estate limit for big taxes . We've got homes right near me here in Hemet that are going for $0 . 9 to $1 . 2 and this is not an upscale area at all! (OK . . . . there are some houses on hills that overlook the peons that are in the $2 to $5 M range . . . but they are kinda limited to the Mayor, the Chief of Police and other community service providers . . . . . Why, their private runways for their private jet aircraft are only worth $1 . 0 M . ) :D	SurferJoe46 (51)
1