Are imaginary goods from video games subject to taxation?
In games like Ultima Online and Star Wars Galaxies, players earn virtual goods like weapons, characters, and clothing. Many players trade their imaginary assets, or sell them for real cash. Some even make a nice living this way, and the income they earn is clearly taxable. But what about simply owning an imaginary ogre, or swapping it for a pretend lightsaber? Is the IRS going to want a taste of that?
Journalist and gamer Julian Dibbell explores these questions in a recent essay in Legal Affairs magazine.
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