IRS something something virtual currency

[Bree Giffen]

https://amp.cnn.com/cnn/2020/02/13/tech/fortnite-taxes/index.html

Are we off the hook on reporting virtual income?

[Selene Gregoire]

4 minutes ago, Bree Giffen said:

https://amp.cnn.com/cnn/2020/02/13/tech/fortnite-taxes/index.html

Are we off the hook on reporting virtual income?

No. You must still report any 1099s you receive from LL.

[Lindal Kidd]

Disclaimer:  I am not a lawyer, an accountant, or an employee of the IRS.  The following reflects my personal opinion and should not be relied on; consult your own accountant.

1099s, yes.  But these do not report $L, they report Process Credit transactions in real dollars.

The Linden Dollar is not a "virtual currency", according to the Second Life Terms of Service.  $L are "tokens" with no intrinsic value.  Therefore, accumulating a large quantity of $L (through tips, content sales, land rentals, etc) is not taxable.  BUT!

When you convert those $L to $USD and do a Process Credit transaction to transfer the money back to your RL account, it's income, and needs to be reported.