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If I buy more linden dollars than I sell in a year, do I even have to worry about taxes on it?


Trey Mason
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Those are really questions for your tax accountant.  The answers will depend on who you are paying taxes to (country, state, local).  In general, in the United States, you are required to report income from any source.  That includes money that you receive from Linden Lab, regardless of how you "earned" it from LL. If you intend to claim that the earnings were offset by money that you sent to LL during the year, you might assert that your payments were business expenses, in which case you would be expected to submit a Schedule C report with your federal tax return and you would be expected to back it up with detailed receipts and records if you were ever audited.  Your accountant will be able to show you how to do that.  Be sure to let your accountant know if Linden Lab has required you to submit a form W-9, since that triggers an automatic report (1099-K) to the feds to let them know how much you have cashed out.  See https://community.secondlife.com/t5/Commerce/Required-Tax-Documentation/ba-p/2336109

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