IRS Removes Language That Might Have Indicated Virtual Currency Could Be Taxed
Only two things are certain: death and taxes. If you play Fortnite: Battle Royale, you'll probably die a lot, but at least you won't have to worry about taxes.
Then again, maybe you will.
CNN reports that the Internal Revenue Service issued guidance all the way back in 2014 that virtual currency would be treated like property for tax services. In other words, if you bought something with V-Bucks, or the currency of any of your favorite games, that business transaction could be subject to taxation. The mandate seemed to be more focused toward more "real" currencies like Bitcoin, but would also sweep up virtual currency in your favorite games.
Except ... now the language seems to have disappeared. According to CNN, the IRS on Wednesday "scrubbed all mentions of the in-game currency from the webpage" following questioning from the news outlet and that "IRS Chief Counsel Michael Desmond told reporters at a Washington conference that including the video game currencies had been a mistake." So don't worry -- your buying virtual property in ArcheAge or The Lord of the Rings Online isn't going to be taxed the same as if you were buying real property.
Then again, maybe it will.
According to Jackson Hewitt Chief Tax Officer Mark Steber, "In the law, if it's not specifically exempted, then it's taxable. Nothing is exempt from taxation which is not excluded from the law." And there are still instructions for Schedule 1 of the tax form that asks about virtual currency transactions. Steber thinks that "more guidance, more rules, more requirements" are coming from the IRS, but you're probably safe not to report your loot box purchases for now. Maybe.
About the Author
Jason Winter is a veteran gaming journalist, he brings a wide range of experience to MMOBomb, including two years with Beckett Media where he served as the editor of the leading gaming magazine Massive Online Gamer. He has also written professionally for several gaming websites.
You May Enjoy
343 Industries Apologizes After The Release Of An Offensive Halo Infinite Juneteenth Cosmetic
The cosmetic has since been renamed “Freedom”.By Aspen Pash - 2 weeks ago
The Lost Ark Delay Was Partially To Remove Controversial Monetization Item "Yoz’s Jar"
It also gave them more time to wrangle bots.By QuintLyn Bowers - 6 days ago
MWO: Solaris 7’s Latest Patch Is Brining A Brand New Map And A New Mech
If players were looking for something new, The Crusader probably has it.By Aspen Pash - 1 week ago
Pyromaniacs Rejoice, It’s Time For The Scorched Sky Celebration In EverQuest
The whole thing kicks off in Lavastorm.By QuintLyn Bowers - 1 day ago
Everything's Sunny Side Up As Trove's Sunrise Update Preps For A New Class On June 28
The update features a new class, new biome, and more.By QuintLyn Bowers - 1 week ago
New Content Comes To Aerhen, Mage Staves Get Upgrades, And City Raids Return In Fractured Online
"Some new, some returning, and some requested quality-of-life updates!"By Anthony Jones - 1 week ago