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ISK is now taxable by the IRS

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Jarod Garamonde
Jolly Codgers
Get Off My Lawn
#41 - 2014-03-26 10:32:00 UTC
What would the IRS even do with ISK, anyway? Buy Megathrons and gank us for not paying our space taxes?
Seriously. People need to think about things before they open their undereducated mouths.

This whole "the guv'mint stole my bike" BS in my country is going way too far. There's PLENTY of other heinous crap our politicians do.... but instead of paying attention to the fact that we're fast becoming a totalitarian dictatorship/fascist police state, you want to complain about how you misinterpreted one little line in a tax code (not actually a law, BTW), and went off on what has to be one of the dumbest conspiracy theories, ever.
The "FEMA Death Camp" loonies are more entertaining than this.

That moment when you realize the crazy lady with all the cats was right...

    [#savethelance]
Remiel Pollard
Aliastra
Gallente Federation
#42 - 2014-03-26 10:36:25 UTC
stoicfaux wrote:
Lucas Kell wrote:
ISK isn't a convertible currency.

EVE. You're playing it wrong.



By not engaging in RMT? No, that would be called playing it right. You can't sell isk for real money, but it doesn't matter, because if you could, this law would only apply to people with isk in IRS jurisdiction.

“Some capsuleers claim that ECM is 'dishonorable' and 'unfair'. Jam those ones first, and kill them last.” - Jirai 'Fatal' Laitanen, Pithum Nullifier Training Manual c. YC104
Burl en Daire
M.O.M.S. Corp
#43 - 2014-03-26 10:37:45 UTC
I was under the impression that all transaction between parties needed to have a tax paid.

Yesterday's weirdness is tomorrow's reason why. Hunter S. Thompson
Alphea Abbra
Project Promethion
#44 - 2014-03-26 10:58:08 UTC
ImYourMom wrote:
TigerXtrm wrote:
Jack Tronic wrote:
Per IRS rulings, all virtual currencies are now taxable as properties.

http://consumermediallc.files.wordpress.com/2014/03/n-14-21.pdf

"Virtual currency that has an equivalent value in real currency, or that acts as a
substitute for real currency, is referred to as “convertible” virtual currency"

Better start pumping the ISK into offshore accounts.


ISK doesn't have an equivalent value in real currency because ISK can not be legally converted into real currency. There is only theoretical value if you reverse calculate the price of a PLEX against its value in ISK.



well it can, you can use ISK to buy a plex,, plex can be sold for real money.
Can PLEX be sold? Technically yes. Will CCP ban you for doing so? Also yes.
The RMT question isn't what is discussed here - where I live, you could probably get in trouble if you do RMT without reporting your income. From the point of the government, it's an income even if the gaming company bans you afterwards. But the point isn't about what you could technically do, but whether it counts as income or assets in any taxation sense.
If any government agency calls the CCP headquarters and asks them whether person A owns for say 1 000$ in assets - CCPs answer AFAIK would be no. They might confirm that A owns 50 PLEX, and that those PLEX was bought at 20$ each, but not that they currently are worth that, because CCP would not allow the person to trade back the PLEX. Furthermore, CCP (Again, AFAIK) would point to the EULA and say that everything on the servers is CCP property and any assets (Such as PLEX) is a part of a service that CCP offers to customers.
To the best of my knowledge, this cannot be taxable.

And, if it were, it would be almost impossible for any non-Icelandic agency to enforce it.
Len Ross
Doomheim
#45 - 2014-03-26 11:18:30 UTC
Finally a fun post .Consider this.
Take a pirate to court for piracy and theft. Might even get someone who plays a spaceship game the death penalty in RL
Prince Golem
Perkone
Caldari State
#46 - 2014-03-26 11:21:25 UTC
you should have waited till April 1st Blink
voetius
Grundrisse
#47 - 2014-03-26 11:32:52 UTC

the only interesting point raised in this thread is whether the tax authority operating under this law could go after RMT sites, as they are trading in virtual currencies.

LordOfDespair
Deep Dark Fantasy.
#48 - 2014-03-26 12:38:07 UTC
This only applies to things like BitCoin.
Tippia
Sunshine and Lollipops
#49 - 2014-03-26 12:40:48 UTC
voetius wrote:

the only interesting point raised in this thread is whether the tax authority operating under this law could go after RMT sites, as they are trading in virtual currencies.

If they don't report their income, sure, but that has nothing to do with the currencies being used.
Reiisha
#50 - 2014-03-26 13:10:27 UTC
Dinsdale Pirannha wrote:
Lucas Kell wrote:
They are talking about bitcoins and the like. ISK isn't a convertible currency. It's a number that CCP hold on your account, which they own the rights to entirely.


LOL...I am sure there are an number of null sec cartel leaders who might be consulting tax lawyers if that document is accurate and legit.


CCP will simply ban the accounts for RMT if they do. No company is obligated to continue to serve customers they don't want to serve.

If you do things right, people won't be sure you've done anything at all...
Qen Tye
In Between
#51 - 2014-03-26 13:50:18 UTC  |  Edited by: Qen Tye
So they want to force US citizens to pay taxes for money used to buy virtual money, which you, the citizen, already paid taxes off?

wait ... what !?!?

This is funny - rly - it is XD

As stated by others /meeza happy meeza no us citizen are.

(Yes I know they cannot touch CCP being situated in Iceland)

Two possibilities exists: Either we are alone in the universe or we are not. Both are equally terrifying.

  • Arthur C. Clarke
Azami Nevinyrall
172.0.0.1
#52 - 2014-03-26 14:11:13 UTC
'merica

...
Qalix
Long Jump.
#53 - 2014-03-26 14:15:53 UTC
Mr Epeen wrote:
Another reason I'm happy to be anything but a U.S. citizen.

Mr Epeen Cool

Ahhhhh, there we go, Mr Epeen. Back to posting things I think are dumb :P

It was killing me agreeing with you so much yesterday
Tippia
Sunshine and Lollipops
#54 - 2014-03-26 14:16:49 UTC  |  Edited by: Tippia
Jarod Garamonde wrote:
What would the IRS even do with ISK, anyway? Buy Megathrons and gank us for not paying our space taxes?
I approve of this new mandate.
Now excuse me while I go and pick up a couple of Mega BPOs.
Desivo Delta Visseroff
The Scope
Gallente Federation
#55 - 2014-03-26 14:19:47 UTC
Posting in a not so stealth "Support Bitcoin / Reading comprehension is hard yo" thread.

I was hunting for sick loot, but all I could get my hands on were 50 corpses[:|]..............[:=d]
Qalix
Long Jump.
#56 - 2014-03-26 14:20:12 UTC
voetius wrote:

the only interesting point raised in this thread is whether the tax authority operating under this law could go after RMT sites, as they are trading in virtual currencies.


It has nothing to do with virtual currency. An RMT is selling something for money, which means they have to pay taxes, just like the store selling bread.

This thread is so derped up.
Batelle
Federal Navy Academy
#57 - 2014-03-26 14:22:06 UTC
Jack Tronic wrote:
Per IRS rulings, all virtual currencies are now taxable as properties.

http://consumermediallc.files.wordpress.com/2014/03/n-14-21.pdf

"Virtual currency that has an equivalent value in real currency, or that acts as a
substitute for real currency, is referred to as “convertible” virtual currency"

Better start pumping the ISK into offshore accounts.



Isk is not a substitute for real currency.

"**CCP is changing policy, and has asked that we discontinue the bonus credit program after November 7th. So until then, enjoy a super-bonus of 1B Blink Credit for each 60-day GTC you buy!"**

Never forget.
Hasikan Miallok
Republic University
Minmatar Republic
#58 - 2014-03-26 14:26:57 UTC
Regardless of what people on internet forums think the IRS will merrily do what they do. Commonsense and tax law have no connection whatsoever.

Note no real money needs to trade hands for something to be taxable . Here for example is the current IRS policy on bartering:
http://www.irs.gov/taxtopics/tc420.html

SomethingIs InMyButt
Levy Guards
Pandemic Horde
#59 - 2014-03-26 14:33:34 UTC
Jack Tronic wrote:
Per IRS rulings, all virtual currencies are now taxable as properties.

http://consumermediallc.files.wordpress.com/2014/03/n-14-21.pdf

"Virtual currency that has an equivalent value in real currency, or that acts as a
substitute for real currency, is referred to as “convertible” virtual currency"

Better start pumping the ISK into offshore accounts.

i'll pay my taxes this year in ISK.
you want 13k? well okay.
*sends 13,000ISK*
Vyl Vit
#60 - 2014-03-26 14:36:40 UTC
Lucas Kell wrote:
They are talking about bitcoins and the like. ISK isn't a convertible currency. It's a number that CCP hold on your account, which they own the rights to entirely.
How can one contrive a conspiracy theory when people like you keep bringing up the FACTS???

Paradise is like where you are right now, only much, much better.