Are virtual assets taxable?

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Thats a tangible item.. virtual items are not.

Virtual items can be copied, when something can be copied, it begins to loose its value, since the sys admins can create whatever they want whenever they want, these items cannot possible get a value assigned. Keep in mind that most of these games have agreements and in those agreements, sales of items are prohibited. Not to mention, but these items are used and are therefore not taxable as a good. As far as a house, again, these items are not tangible. Think of them as game tokens, taxes are paid when i pay for the game tokens(playing online), but i can trade these game tokens with other players, they still have no value as they cannot be transfered to another game or into real life( hence non-transferable).

I say these items are used because you pay the maker of the game to get these items, then you trade/sell them to someone else. I am not sure where used items stand in the tax code, but i think they cannot be taxed twice( which is the same as royalties not being paid twice for the same item )

Posted by: Been_Done_Before   Posted on: 01/17/06 You are currently: a Guest | Members login | Terms of Use

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