Silks Ametza

In the United States, if you keep the cash you gain from selling Linden Dollars (L$) on the LindeX in-game via your dashboard, no you do not have to report it. If you transfer it to your Paypal Account, yes you do depending on how much you earn. As it is, you can earn up to $2,399 per year per family member and not have to report it to the Internal Revenue Service (IRS)- once you cross over to $2,400 per year per family member, then yes you do. Example- you have 1 avatar in Second Life and a family of 5 in the real world. You can earn $11,995 in the real world and not have to report it. Once you earn $12,000, then yes you do when you transfer what you sell on the LindeX to your Paypal Account. The current Selling Rate on the LindeX is L$256 per $1.00- So you would need L$3,072,000.00 to make $12,000 a year before you have to report it to the IRS in your income taxes. Also remember, you can count expenses in your income taxes depending on what you do. A Disc Jockey (DJ) counts a Streaming Server, his/her desktop/laptop computer, his/her initial software purchases and music purchases as business expenses- those are deductions on your income taxes. Down the road, the DJ can deduct maintenance and upgrades to his desktop computer as expenses in addition to music purchases.