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ISK is now taxable by the IRS

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Gogela
Epic Ganking Time
CODE.
#21 - 2014-03-26 02:06:15 UTC
ISK doesn't qualify as a virtual currency.

/thread

Signatures should be used responsibly...
Jack Tronic
borkedLabs
#22 - 2014-03-26 02:19:05 UTC
Gogela wrote:
ISK doesn't qualify as a virtual currency.

/thread


ISK can be RMTed to and from dollars whether CCP wants to or not.
James Amril-Kesh
Viziam
Amarr Empire
#23 - 2014-03-26 02:25:30 UTC
You could sell bottles of **** for money. That doesn't make them currency.

Enjoying the rain today? ;)
Gogela
Epic Ganking Time
CODE.
#24 - 2014-03-26 02:45:52 UTC
Jack Tronic wrote:
Gogela wrote:
ISK doesn't qualify as a virtual currency.

/thread


ISK can be RMTed to and from dollars whether CCP wants to or not.

Yes, and that's already taxable. It's filed under "misc. income". Not kidding. Did you know that profits from dealing drugs illegally are also taxable? What I'm saying is that ISK doesn't qualify as a virtual currency under the law, not that it can't be RMT'd. It's not a parallel currency like bitcoin, litecoin, or Peercoin. In fact, as I understand it, the IRS is taxing bitcoin as a commodity and NOT a currency. As ISK is not readily convertible to anything real and as ALL ISK is owned exclusively by CCP, ISK can't even be taxed as a commodity. ...if it could be, Iceland would be the only one that could tax it, as CCP is the owner of all of it and they are an Icelandic company.

Sorry to inject so much logic and truth into this complicated discussion. Please continue...

Signatures should be used responsibly...
Enraku Reynolt
Of Tears and ISK
#25 - 2014-03-26 02:48:07 UTC
lets assume that somehow isk could be taxed
that would mean I could probly write off my ammo, possibly travel, and other crap as expenses, trust me, if they tries to tax isk, someone would try to get the deductions, and Id want to know if those legal procedings are open to the public, and can I bring snacks
Brock Nelson
#26 - 2014-03-26 02:49:58 UTC
Jack Tronic wrote:
Better start pumping the ISK into offshore accounts.


It is already offshore, its in London

Signature removed, CCP Phantom
Kaarous Aldurald
Black Hydra Consortium.
#27 - 2014-03-26 02:52:49 UTC
Gogela wrote:
Jack Tronic wrote:
Gogela wrote:
ISK doesn't qualify as a virtual currency.

/thread


ISK can be RMTed to and from dollars whether CCP wants to or not.

Yes, and that's already taxable. It's filed under "misc. income". Not kidding. Did you know that profits from dealing drugs illegally are also taxable? What I'm saying is that ISK doesn't qualify as a virtual currency under the law, not that it can't be RMT'd. It's not a parallel currency like bitcoin, litecoin, or Peercoin. In fact, as I understand it, the IRS is taxing bitcoin as a commodity and NOT a currency. As ISK is not readily convertible to anything real and as ALL ISK is owned exclusively by CCP, ISK can't even be taxed as a commodity. ...if it could be, Iceland would be the only one that could tax it, as CCP is the owner of all of it and they are an Icelandic company.

Sorry to inject so much logic and truth into this complicated discussion. Please continue...


But, the whole point of drugs and pimping is to NOT have taxable income... damn you, government!

"Verily, I have often laughed at the weaklings who thought themselves good because they had no claws."

One of ours, ten of theirs.

Best Meltdown Ever.
Silent Rambo
Orion Positronics
#28 - 2014-03-26 02:59:14 UTC
Mr Epeen wrote:
Another reason I'm happy to be anything but a U.S. citizen.

Mr Epeen Cool


Mr Epeen wrote:

Mr Epeen Cool


Grandma? Is that you signing every single post that already has your name attached to the actual post?

You really think someone would do that? Just log into EvE and tell lies?
Dominic karin
Versatility Production Corporation' LLC
#29 - 2014-03-26 04:47:32 UTC
Isk can not be legally 'Converted' to USD and therefor is not a 'Convertible' currency and THEREFOR is not taxable.

/Thread.
Hasikan Miallok
Republic University
Minmatar Republic
#30 - 2014-03-26 05:15:41 UTC
Regardlessof what GD forum lawyers and CCP themselves have to say on the matter:

ISK will be a virtual currency of not a virtual currency SOLELY on the basis of what real world legislators and real world courts decide.

If a statute or case law eventually makes it a virtual currency in a particular jurisdiction it becomes one. Otherwise it is not one. No amount of internet lawyering on forums or fancy EULA conditions by CCP will change that.

Sidenote: Worldwide there is an increasing tendency for courts to deem internet intangibles as "choses in action" that can be stolen or are taxable. There are interesting times ahead and there is no way of predicting exactly how this will eventually panout.
Bruce Kemp
Suddenly taken over
#31 - 2014-03-26 06:34:28 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.


This.Cool
Riot Girl
You'll Cowards Don't Even Smoke Crack
#32 - 2014-03-26 06:43:15 UTC
ISK doesn't act as a substitute for real currency.

Oh god.
Prince Kobol
#33 - 2014-03-26 07:18:17 UTC
The only possible way I can think off for either the IRS or HMRC to get involve is if CCP reported anybody caught selling isk for RL money and that person is investigated for not declaring another source of income.
Tanuki Kittybeta
Ripperoni in Pepperoni
#34 - 2014-03-26 07:23:16 UTC
In any case, why should I care about what's going on with US laws?
Prince Kobol
#35 - 2014-03-26 07:34:53 UTC
Tanuki Kittybeta wrote:
In any case, why should I care about what's going on with US laws?



Didn't you know, The US is the only country in the world P
ImYourMom
Retribution Holdings Corp
Retribution.
#36 - 2014-03-26 08:04:45 UTC
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.
Loraine Gess
Confedeferate Union of Tax Legalists
#37 - 2014-03-26 08:13:26 UTC
Regnag Leppod 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.


The IRS will just see that Isk can be "converted" to PLEX or Aurum. They don't care who owns it, they just tax it.




They'll tax it at what rate, 5% of isk? are we sending our 5% of taxed isk to an IRS account???




It's for CONVERTIBLE currencies that have a real-life equivalent...
Chribba
Otherworld Enterprises
Otherworld Empire
#38 - 2014-03-26 08:16:45 UTC
Good look enforcing that. If it had any effect on EVE.

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Jarod Garamonde
Jolly Codgers
Get Off My Lawn
#39 - 2014-03-26 09:54:52 UTC  |  Edited by: Jarod Garamonde
Nariya Kentaya wrote:

game is hosted in UK by an icelandic company, they cant tax ****.

also, ISK isnt owned by any player, its owned by CCP, so if they want to try and tax someone for my use of an ingame currency theyd have to tax CCP



Dear OP and everyone who believes OP's nonsense,

Read Nariya's post, multiple times, understand that you're wrong, and STFU.
This will never be a discussion, again.

The IRS doesn't even have a solid constitutional law to operate on, in the US. Why in the blue hell do you think they would be able to operate in Iceland?
(Yes, folks.... the IRS is technically illegal)

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

    [#savethelance]
Wacktopia
Fleet-Up.com
Keep It Simple Software Group
#40 - 2014-03-26 10:25:07 UTC  |  Edited by: Wacktopia
Jack Tronic wrote:
"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"


ISK itself has no monetary value and can never be exchanged for real world money.

Whilst you can buy ISK via the PLEX system, this is a one-way transaction.

Ergo, ISK is not "convertible" in the sense that convertible infers conversion in both directions.

.

Kitchen sink? Seriousy, get your ship together -  Fleet-Up.com