Are MMORPG goods theoretically taxable?
Legal Affairs ran an extremely peculiar article this month about the taxability of MMORPG goods. Virtual items found within popular Internet roleplaying games are commonly sold or auctioned to other players for real world currency. Since such items clearly have legitimate market value, tax law is applicable. In the article, Ultima Online trader Julian Dibbell examines some of the implications. In June 2003, Dibbell stated that he would report his gaming income to IRS and pay taxes accordingly: “On April 15, 2004, I will truthfully report to the IRS that my primary source of income is the sale of imaginary goods and that I earn more from it, on a monthly basis, than I have ever earned as a professional writer.” All your gold are belong to us I’m obviously in the wrong business. At the end of the year, he made a total of US$11,000 auctioning off game items on eBay. True to his word, Dibbell reported his profits and paid his taxes, but the experience left him with unanswered questions. Ac
