Posted by: Joe | December 5, 2006

Virtual taxation

Every once in a while I see buzz about taxation and virtual assets.  I can’t see anything changing about this anytime soon, because there’s no way the government can make money on it.

If you tax the income generated by sales of virtual goods, then you have to allow gamers to write off the expenses associated with generating that income.  That means gaming subscriptions, ISP costs, utilities, portion of rent/mortgage, etc, etc.  And while there are a very small proportion of MMORPG gamers that make a profit on the sale of their virtual assets, most don’t, and you can’t just tax the ones that make a profit.

The situation is very analogous to the subject of taxing curling winnings that comes up every couple years when one of the elite Canadian teams has a particularly good stretch.

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Responses

  1. The Onion weighs in.

  2. More input, from Dave Birch.


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