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Sudane Erato

So LL will be sending 1099s, beginning with 2018

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57 minutes ago, Luna Bliss said:

The Linden dollar was classified as a virtual currency in 2013.  It is a "convertible currency" and is subject to taxation. 

** I posted all the links to this earlier.

I think what that writer meant to put was Linden Research Inc. has been defined as a Money Service Business (their registration is 31000118037625) versus that the Linden dollar specifically has been classified as a virtual currency back in 2013.  Their classification is 409 as a Money Transmitter.  Effectively, that means they transfer funds or provide payment services - not that L$ therefore is a virtual currency as a result of that registration.    I am wading through material as I am not sure how that writer confirmed his statement that L$ was specifically defined as a convertible currency as even in the guidance from Fincen I would strongly question how L$ fits that profile except for the "value" part or whether he made that assumption on the basis of the MSB filing alone and mis spoke.    So in summary they may have that status simply as they send us USD when we cash out, or they may have it due to the cash out AND the fact they are an Administrator of an exchange.  Their classification papers do not differentiate.

Either way,  it's confusing with the guidance from FinCen over convertible currencies versus the registration aspect that occurred at a different time.

I certainly would not be going against my CPA on the basis on a writer's article (even with his credentials) there needs to be a clear communication from @Linden Lab on whether any of their MSB filings or TPSO status have led them to believe the L$ is now considered a virtual currency.  Until they do, I am going to stick with their TOS statement as my defense.

Edited by Charlotte Bartlett
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23 minutes ago, Blush Bravin said:

Linden Lab has good motivation to fight that classification. Who in their right mind is going to want to participate in a virtual world where you have to file tax returns on the game money you earn and spend within that virtual world? By your definition even those who NEVER cash out one dollar would have to file a tax return based on that game income. 

Bingo.

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I am sure the IRS will be thrilled to get returns including how much Monopoly money someone won, too.

so all you people who plan to report your Linden earnings and expenses, is there a special non USD form you plan to use? 

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4 minutes ago, Pamela Galli said:

I am sure the IRS will be thrilled to get returns including how much Monopoly money someone won, too.

so all you people who plan to report your Linden earnings and expenses, is there a special non USD form you plan to use? 

Counting my 500 dollar notes right now including the whole bank pile. 😂

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Let's take a moment to look at another example. Take World of Warcraft, it's common knowledge that gold farmers are alive and well making real life money selling their gold. Of course this practice is not sanctioned by Blizzard, but that doesn't stop the huge market for gold. So here we see that gold has a value in real money. Does that mean that those who play WoW and earn gold now have to consider the gold they earn as RL income? The thought seems ludicrous, and it is!

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3 minutes ago, Blush Bravin said:

Does that mean that those who play WoW and earn gold now have to consider the gold they earn as RL income? The thought seems ludicrous, and it is!

Bingo. 

 

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One thing to consider...just something I've learned along the way...
 
In times past I took advantage of every legal loophole I could so as not to pay taxes...but as the years piled on I became more aware of information regarding Social Security & Retirement. Your income in those later years will be based on your taxable income -- the less taxable income reported the less your retirement checks will be!  And it appears payments are low enough as it is.
Could be it pretty much comes out in the wash -- more money now could equal less money later, or visa versa. They get you coming or going it seems :( 

Anyway, to see what you'll receive the Social Security website has forms to input your income for working years past and estimate years for future earnings, and one can view the amount of their retirement benefits.

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28 minutes ago, Kiera Clutterbuck said:

Hey I'll never grow old!

 

Unless you get really lucky.

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10 hours ago, Charlotte Bartlett said:

I think what that writer meant to put was Linden Research Inc. has been defined as a Money Service Business (their registration is 31000118037625) versus that the Linden dollar specifically has been classified as a virtual currency back in 2013.  Their classification is 409 as a Money Transmitter.  Effectively, that means they transfer funds or provide payment services - not that L$ therefore is a virtual currency as a result of that registration.    I am wading through material as I am not sure how that writer confirmed his statement that L$ was specifically defined as a convertible currency as even in the guidance from Fincen I would strongly question how L$ fits that profile except for the "value" part or whether he made that assumption on the basis of the MSB filing alone and mis spoke.    So in summary they may have that status simply as they send us USD when we cash out, or they may have it due to the cash out AND the fact they are an Administrator of an exchange.  Their classification papers do not differentiate.

Either way,  it's confusing with the guidance from FinCen over convertible currencies versus the registration aspect that occurred at a different time.

I certainly would not be going against my CPA on the basis on a writer's article (even with his credentials) there needs to be a clear communication from @Linden Lab on whether any of their MSB filings or TPSO status have led them to believe the L$ is now considered a virtual currency.  Until they do, I am going to stick with their TOS statement as my defense.

 

10 hours ago, Blush Bravin said:

Let's take a moment to look at another example. Take World of Warcraft, it's common knowledge that gold farmers are alive and well making real life money selling their gold. Of course this practice is not sanctioned by Blizzard, but that doesn't stop the huge market for gold. So here we see that gold has a value in real money. Does that mean that those who play WoW and earn gold now have to consider the gold they earn as RL income? The thought seems ludicrous, and it is!

See what I mean about dividing by 0?

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15 hours ago, Kiera Clutterbuck said:

I worry about audits with all this mess.

Me too -- being self-employed adds complications. Plus I'm not the greatest organizer of expenditures or income.

My CPA said (a few years ago) that they were doing more audits on self-employed earners now. So far I have escaped being audited.

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