Are virtual assets taxable?

[mandy]

Journalist and "Ultima Online" junkie Julian Dibbell issued himself a very public challenge two years ago.

"On April 15, 2004, I will truthfully report to the IRS that my primary source of income is the sale of imaginary goods," Dibbell wrote on his blog at the time, "and that I earn more from it, on a monthly basis, than I have ever earned as a professional writer."

Dibbell has the virtual-world community buzzing over a new question: Should online game players' assets--the weapons, characters, clothing and such--they've accumulated but not yet sold for real-world cash be taxable by the IRS?...

full article: http://news.com.com/Are+virtual+assets+t...g=nefd.pop