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News Rumor Business IRS MAY POTENTIALLY TAX IN GAME CURRENCY [THE TAXMAN COMETH]

Elektro Demon

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A CNN report has revealed that the IRS website specifically cited Fortnite's V-Bucks and Robux from Roblox as digital currencies that could be subject to "tax consequences."
The reference to V-Bucks has since been removed, but it was in place since at least October 2019 and can still be seen via the Wayback Machine.
"Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as 'convertible' virtual currency. Bitcoin, Ether, Roblox, and V-bucks are a few examples of a convertible virtual currency," the Virtual Currencies page said prior to the change. "Virtual currencies can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies."
The current version of the page removes all examples except Bitcoin, but maintains an identical description of potential "tax consequences" applicable to virtual currencies. The sale or other exchange of virtual currencies, or the use of virtual currencies to pay for goods or services, or holding virtual currencies as an investment, generally has tax consequences that could result in tax liability," the pages state.
https://www.pcgamer.com/the-irs-may-want-to-tax-your-v-bucks/

Interesting...
 

LOLCats

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What, i’m already taxed when i pay for digital currency. So i’ll be taxed AGAIN when using it?
For buying digital currency, you get taxed once, sales tax if you have it.

But im guessing you can farm vbucks from in game activities and can convert it to US dollars, the fed would be trying to tax any of those profits.


edit: i dont know anything about vbucks, article says they cant be cashed out?... anyway i think that was the intent by the IRS, but they removed it probably because it didnt fully qualify as a digital currency. But who knows...
 
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demigod

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For buying digital currency, you get taxed once, sales tax if you have it.

But im guessing you can farm vbucks from in game activities and can convert it to US dollars, the fed would be trying to tax any of those profits.

I don’t play fortnite so i wasn’t familiar of the farming. I just paid a monthly sub for my son to get robux. If i get taxed for using it i’ll just cancel.
 
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LOLCats

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I don’t play fortnite so i wasn’t familiar of the farming. I just paid a monthly sub for my son to get robux. If i get taxed for using it i’ll just cancel.

so if cashing out your robux is allowed by TOS and if there is an in game market supporting that, they want to tax any of that money you might profit. Think D3 RMAH, a lot of real money was made there, just from digital items people got as drops. Thats what they want to tax.

For digital purchases, you dont pay sales tax on those monthly top ups? Assuming your state has sales tax.
 
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demigod

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so if cashing out your robux is allowed by TOS and if there is an in game market supporting that, they want to tax any of that money you might profit. Think D3 RMAH, a lot of real money was made there, just from digital items people got as drops. Thats what they want to tax.

For digital purchases, you dont pay sales tax on those monthly top ups? Assuming your state has sales tax.

Ahhh ok, I thought you get taxed for “using it”. Yeah i got taxed for the monthly sub.
 

LOLCats

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The U.S. Government needs their Nuclear Program to get funded soon so......

or medicare.

 
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