Tuesday, July 10, 2007

A Fly in the Virtual Carbon Arbitrage Ointment

It appears our virtual hurdle rate will be 65% higher than it would seem at first blush:

IRS taxation of online game virtual assets inevitable

"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?"

From cnetNews