you may be interested in this story on Slashdot.

Well if you believe in paying income tax you should be paying tax on your income from SL

And thusly, a loss would be a write off. Interesting slope to slide down, ehh?

I am not arguing that a profit, in terms of real currency, is indeed not to be disclosed and taxed. Inversely, as a RL business owner, I could set up an SL business, show it as a loss and, in essence, offset a portion of my cost incurred to amuse myself in SL.

The IRS opens more cans of worms every time that they look to get deeper into our pockets.

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bad boys, bikes, and babes

How true so you gave me the idea -- I'll use SL to advertise for my RL business and thus. A cost of doing business

The real secret is that most seemingly "profitable" businesses in Second Life are actually no such thing.

Try spending the equivalent of 15,000 USD a year on new sims, leaving you with 2340 USD a month in tier charges. Not to count the fact that it had been ramping up all that time.

Then consider the time spent.

Net income is pretty minimal, unless land owners stop expanding, or content designers and events people stop burning incredible hours to create products and services.

And as anyone in such businesses know, stagnation and being "yesterday's thing" in Second Life is not exactly going to generate income.

I've already discussed a lot of the issues with my CPA. If the value of $L (which could vanish tomorrow) are properly appraised -vs- USD, it's pretty plain that you don't have much *until* you have real money sent to your bank account.

Once real currency hits your bank, then you can list it at misc. income, professional services or whatever proper, taxable category it applies to for you.

Another hint if you are in the USA: Incorporate. And place that corporation in the name of a trust.

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- Desmond Shang


Steampunk Victorian, Well-Mannered Caledon: secondlife://caledon/190/190
West Trade Imports LTD Architecture & Antiques: secondlife://alice/89/114

BTW, the next day's news stories all contained clarifications from this self-same Congressional committee which said they would not be taxing the income that remains in world, that it remains virtual and they didn't see how they could tax it.

Of course, they'll return to this subject of this proves to be a significant money-laundering operation.

For us or for them?