Perrie Juran Posted April 8 Share Posted April 8 "Because Linden dollars has a determinable value in the real market, the Financial Crimes Enforcement Network (FinCen), a bureau of the United States Department of the Treasury, recognized Linden Money as a convertible centralized virtual currency in 2013. This means that there are tax implications for any transaction involving Linden Dollars. " https://www.investopedia.com/terms/l/linden-dollar.asp 1 1 Link to comment Share on other sites More sharing options...
Modulated Posted April 8 Share Posted April 8 7 minutes ago, Perrie Juran said: "Because Linden dollars has a determinable value in the real market, the Financial Crimes Enforcement Network (FinCen), a bureau of the United States Department of the Treasury, recognized Linden Money as a convertible centralized virtual currency in 2013. This means that there are tax implications for any transaction involving Linden Dollars. " https://www.investopedia.com/terms/l/linden-dollar.asp ...only when they are sold for actual money like USD, and then transferred out of SL does that kick in. You could make a zillion Linden in SL and if you never move it out its not taxable pretty much, it stays space bux. 1 1 Link to comment Share on other sites More sharing options...
Rowan Amore Posted April 8 Share Posted April 8 9 minutes ago, Perrie Juran said: "Because Linden dollars has a determinable value in the real market, the Financial Crimes Enforcement Network (FinCen), a bureau of the United States Department of the Treasury, recognized Linden Money as a convertible centralized virtual currency in 2013. This means that there are tax implications for any transaction involving Linden Dollars. " https://www.investopedia.com/terms/l/linden-dollar.asp Later in that same article it does also say... "The company's own terms of service state that players have no financial or legal claim to their L$ which is a consumable entertainment product that can be revoked or deleted at any time without reason. No fiat currency will even make such demands of those who transact with that currency, because it would represent an undue risk of holding that currency. Virtual currency is not viewed as real money, but as property for tax purposes. Property tax laws, therefore, apply to Linden dollar transactions." 3 1 Link to comment Share on other sites More sharing options...
Bdobson Posted April 8 Share Posted April 8 On 4/2/2024 at 10:18 AM, Coffee Pancake said: Couple of points ... "this is a hobby" The workload required to make a thing has increased exponentially, so has the tooling required. Once upon a time anyone could rub some prims together and call it a hat, but not anymore. SL now requires industry skills, software and a high degree of competency with those tools. SL is also weird, so special knowledge of the platform is often required in addition. Things take considerable amounts of time to make, test and debug. As much as this might be a disposable hobby that could all close tomorrow for some here, it consumes the time and labor of a real job to make the content. SL business owners are often working 60 to 80 hours a week, just to turn out something you all think they should be able to make in their spare time while doing another job. "sucks to be them, they should get a real jerb" You do all realize the kinds of people who end up in SL right. The name of the place is kind of a hint. Some quit their real jobs to work here, plenty didn't have or couldn't have real jobs in the first place, and rather than wanting to support people who are finding ways to be productive and self sufficient...... Running a recognizable brand here is a full time job, and as anyone who has been self employed will know, when you work for yourself, you are never away from work. Try working where you play. The fun evaporates pretty fast. SL is a high pressure working environment with constant deadlines, customer service headaches and fractional incomes that can be wiped out by one person leaving a crappy marketplace review. Burn out is a real problem, no one takes any time off (because they can't). "everything should be cheeeeeep" Even if we increased prices by a factor of ten, it still would be cheap, and that's not what I'm suggesting at all. I'm suggesting that the L$ presents a high apparent value, and that this exerts a downward pressure on the entire economy. Also ... I did DJ in RL (And occasionally still do). When I DJ on SL, That graphic nailed it! But I do it as a hobby as well. Link to comment Share on other sites More sharing options...
Bdobson Posted April 8 Share Posted April 8 (edited) 100 L$ = 1USD, hmm, 500 L$ = 5 USD 5,000 L$ = 50 USD 50,000 L$=500 USD 500,000 L$ = 5,000 USD Using the Linden Exchange rate as of this writing: 100 L$ = 41 cents USD 500 L$ = 2.04 USD 5,000 L$ = 20.33 USD 50,000 L$ = 203.26 USD 500,000 L$ = 2,032.53 Conversely, using that same linden rate, 100 USD would get you 24,600 L$, under the proposal that would cost 246 USD. Over twice as much USD! Edited April 8 by Bdobson 1 1 Link to comment Share on other sites More sharing options...
CaitlinParker Posted April 8 Share Posted April 8 42 minutes ago, Bdobson said: 100 L$ = 1USD, hmm, 500 L$ = 5 USD 5,000 L$ = 50 USD 50,000 L$=500 USD 500,000 L$ = 5,000 USD Using the Linden Exchange rate as of this writing: 100 L$ = 41 cents USD 500 L$ = 2.04 USD 5,000 L$ = 20.33 USD 50,000 L$ = 203.26 USD 500,000 L$ = 2,032.53 Conversely, using that same linden rate, 100 USD would get you 24,600 L$, under the proposal that would cost 246 USD. Over twice as much USD! You just proved my point. Link to comment Share on other sites More sharing options...
Bdobson Posted April 8 Share Posted April 8 58 minutes ago, CaitlinParker said: You just proved my point. Which was my intent. 1 Link to comment Share on other sites More sharing options...
Perrie Juran Posted April 8 Share Posted April 8 Just for reference I posted that link to Investopedia because I saw some things here that were more guesses than based on fact. I used to have links to the FinCen rulings on Linden Dollars but sadly lost them all when a hard drive deep six'd on me and I never recovered them among many other links. From my observations it is a very small percentage of SLer's who have any understanding of how the Lindex works. Link to comment Share on other sites More sharing options...
Ceka Cianci Posted April 8 Share Posted April 8 2 hours ago, Perrie Juran said: Just for reference I posted that link to Investopedia because I saw some things here that were more guesses than based on fact. I used to have links to the FinCen rulings on Linden Dollars but sadly lost them all when a hard drive deep six'd on me and I never recovered them among many other links. From my observations it is a very small percentage of SLer's who have any understanding of how the Lindex works. The lindens never really leave the bubble.. Tilla is the buffer with the wallet.. Any USD transferred to an external account from the wallet is taxable as income. That's considered the cashing out point, when it leaves the service. As long as the USD stays within the service and used within the service, for like land and premium memberships and things like that, it's not considered income. Link to comment Share on other sites More sharing options...
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