In the real world tax season totally sucks, and now, sadly, it's the same for participants in massively multiplayer online games. That's right, on April 15 you now owe the man a portion of your
earnings from that fine little real estate business you've set up for yourself in Second Life.
The virtual world, where real users turn real money into virtual money for the spending
pleasure of their virtual selves, has become a little economy unto itself, where the earnings of entrepreneurs are significant enough for the IRS to come calling if you don't perform your citizenly
duty. The truth is, like anywhere else you earn money, your Second Life revenue was always taxable, but neither you nor the IRS knew any better. But now Second Life and other MMOGs are touting
themselves as virtual moneymakers for real-world citizens. Last fall, one Second Life citizen claimed her real-estate business minted her a millionaire; roughly $1.6 million was injected into the game
last Friday, according to the CNNMoney report.
However, the article points out that tax law is murky when it comes to transactions that occur solely in Second Life. Sure, money you
take out of the game is taxable, but what about the Lindens (the game's currency) you keep in? Once it makes a ruling, the Joint Economic Committee of Congress will bring the matter before Congress.
Read the whole story at CNNMoney.com »