Trey Mason

Edit: I do not own a business. Even if I buy lindens and cash them right out I have to pay taxes on them? This year I have spend a few thousand dollars (USD) buying lindens. I have cashed out around $1000 (USD) worth of lindens. Linden lab asked me for my I.D. which I just provided them for a $400 (USD) cash out. My question is during tax season, do I have to claim that as income, then show that I spent more than I earned? Or just not have to worry about it because I know for a fact that I did not make any real earnings on it? I have already looked at my transactions for this year through second life, and can see that I have bought more Lindens than I have sold back to real USD. I buy my lindens on the linden lab website and sell on the linden lab website. The only difference is that I buy with my debit card, and cash out through PayPal.