https://www.googletagmanager.com/gtag/js?id=UA-16526708-19

In-game Currency Income Tax

This is fascinating to me, but I’m a nerd.

Taxation of virtual currencies – particularly within video games – is an emerging revenue stream, one that the IRS is still clearly trying to figure out. Game engines are on the verge of becoming banks… actual banks. Guess what? That’s going to throw a whole new problem into their business model because it exposes them to something that their industry isn’t priced for: Office of the Comptroller of the Currency oversight.

Your kid’s in-game swords and skins are about to become exponentially more expensive for you. And they could potentially use the value of in-game transactions converted into real-world income as a way to pay their way through college. Head’s up parents: if your kids are using your credit card to purchase in-game currency to buy/sell appreciated assets, their profits will likely be considered your income, and taxable via 1099-MISC.

%d bloggers like this: