Andrews String

Hello. Some time ago I had read the steps that are needed to be taken in order sl default animations to be imported to blender and especially to the pose library for a later easy test of mesh stuff rigged to it. Could you please provide some reference to that? Thank you in advance for your answer!

Thank you for the great sources!!! You have been quite helpfull! @PaperB: Thank you for letting us know your situation in more details. I appreciate your answer!

Thank you for answering! First of all, the right and responsible thing for every citizen of any country is to pay his bills. So do I! So my thoughts are not against that anyway! But since this is something new all the conversation that is happening with virtual currencies I try to figure out the principles that apply to them. That is this conversation about. By the way, you mentioned you pay taxxes to the US IRS because in your country tax costs would be more. Have your country tax treaty with US? In case it does (my country actually does), are you free to choose where to be taxed? And if so, what is the paperwork or any other process you had to do in order to do so? Any information on that would be really usefull for future reference. Thank you for your contribution!

In my country noboady cares nor have heard of second life..I would say here most updates on this matter start from USA and then other countries mostly follow up these updates. I am on way to write and send a relevant question to my country's tax authority. Since they dont know second life and even virtual currency dont seem to be in its priorities, I want to present this matter as more accurately as it could be. This is why I need to report how IRS of US treats relevant issues, since as I said evrything regarging this matter start here..I hope I have covered your curiocity By the way since your are not a merchant here, I appreciate even more your contribution!

Thank you for answering! After heaving read through linden lab's TOS, IRS's notice and FinCEN's relevant guidance, to me, the sale of virtual goods and services is not considered equivelant to the the sale of real goods and services! In addition, since any earnings that remain as L$ into Second Life are not money at all, the sale of virtual goods and services does not constitute a self-employment income that is subject to self-employment tax. Our earnings are considered as income only when we sell our L$ to other residents through the LIndex Exhchange, and we are even able to retain any L$ we have gathered before for more than a year. This last activity of exchanging or selling my L$ (that is considered by IRS as convertible virtual currency) is a taxable income but it is not any more a "sale of goods or services"..This is where the mess is for me, and what I really don't understand at all. That is why I thought opening this thread, but it seems no merchant with a taxable income replies, at least to let us know how is his/her income has been treated by the IRS till now. Imagine I don't even live in US..

Thank you for answering as well as providing this information. If someone takes a careful look through the last notice of IRS that is the title of my thread should read this: "For a more comprehensive description of convertible virtual currencies to date, see Financial Crimes Enforcement Network (FinCEN) Guidance on the Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies (FIN-2013-G001, March 18, 2013)" Relevant link FinCEN's guidance here So my main question in this thread was not wether any earnings from second life are treated like a taxable income by the law. We all get they are! My question had to do with how finally this income is characterised by the law since different forms of income have different tax rates. I really appreciate the fact that some people try to help providing various links by IRS or anything else that matters. But I think your answer Parish was the only one actually relevant to my question! After all, is there anyone (that should actually be a lot) that has any income from second life to let us know what his/her income is treated like by the law? In other words what is his/her income is characterised as by tax authority and what is the tax rate? (Answers like, this is a taxable income, go there and read, are not really relevant with this post since there is a recent notice of IRS that I call everyone her to read first!)

Thank you for answering. What or who justifies wether you have or not to work outside sl to pay your bills? I mean, lets assume that my main job is outside sl. However, I also have an income from second life. In general what are the criteria that would make me self employed?

Thank you for answering here. I have already read most of this stuff but still my main question remains unanswered or at still I can not understand this matter myself. In other words, I have not realised what is my earnings as well as my activity in second life condidered as by U.S. law? Let me explain.. I create virtual clothes. I sell them and earn linden dollars. I then sell my linden dollars through linen lab to other residents for real $USD. I totally understand this is a kind of income out of this activity that is taxable. IRS has recently named this income that comes from transactions with "convertible virtual currency". However, I am uncertain over how to characterize activity that gives me this income. Does selling virtual stuff put my self under the same category with an individual who sells real clothes? Or anything else applies?

The IRS issued on March 25, a notice (link) which describes how the IRS will apply U.S. tax principles to transactions involving virtual currency. The GAO had previously issued a report (link) on virtual economies and currencies, calling for additional IRS guidance on the basic tax reporting requirements applicable to virtual currencies. Reading through IRS's notice I have not clearly identify what exactly our transactions with linden lab stand for in order to determine how any earnings from second life would be treated regarding taxes in USA. I am not a US resident but live in Europe. However, in my country they have not even heard of second life so before asking an accountant in my country, I would first like to know what kind of income does IRS of USA consider second life earnings as. So my question is whether someone's earnings selling for example virtual clothes in second life are subject to the self-employment tax in USA or what? Thoughts by anyone who either knows better or have understood better recent notice by IRS, would be deeply appreciated! Thank you in advance.

Are second life earnings considered as income that comes from selling goods to other people or just as earnings that come from selling virtual currency (linden dollar) to Linden Lab for real $USD, just like bitcoin for example which is another virtual currency? Since this is not clear at all in my country, I would appreciate it if you let me know what does your country's tax authority consider as second life earnings that you report to it? It is very important for me to clarify that in order my any earnings to be treated/taxed in they right way. Thank you all for any response! Edit: My question is, since linden dollar is concidered by legislation a virtual coin/currency and our earnings come from selling our vitual coins to linden lab for real $USD, should a Tax authority tax this income as we would sell stuff on ebay for example, or as we would trade a virtual coin such as bitcoin for example on a trade platform that in our case seems to be linden lab? They are two completely different cases, so I am asking you, what your country's tax authority explains as well as taxes this income as, because in my country they haven't even heard second life..