The taxman eyes Second Life and World of Warcraft virtual economies

[mandy]

Users of online worlds such as Second Life and World of Warcraft transact millions of dollars worth of virtual goods and services every day, and these virtual economies are beginning to draw the attention of real-world authorities.

"Right now we're at the preliminary stages of looking at the issue and what kind of public policy questions virtual economies raise -- taxes, barter exchanges, property and wealth," said Dan Miller, senior economist for the Joint Economic Committee of the U.S. Congress.

"You could argue that to a certain degree the law has fallen (behind) because you can have a virtual asset and virtual capital gains, but there's no mechanism by which you're taxed on this stuff,"...

full article: http://www.sciam.com/article.cfm?chanID=sa003&articleID=D26B10CA0DE48DE1619FCEFC39D00D64

[mandy]

For months, the community of virtual world publishers, players and economists has been holding its breath, waiting for the U.S. Congress to issue its report on the potential taxation of virtual goods.

Well, we don't have to wait much longer...

"Given growth rates of 10 to 15 percent a month, the question is when, not if, Congress and IRS start paying attention to these issues," Miller, who is a fan of virtual worlds and economies, told CNET News.com in December. "So it is incumbent on us to set the terms and the debate so we have a shaped tax policy toward virtual worlds and virtual economies in a favorable way."...

full article: http://news.com.com/8301-10784_3-9733848-7.html