Playing Video Games Is Going To Really Complicate Your Taxes
K. Mike Merrill is the world's only publicly traded person. In order to allow shareholder control of his life he had to develop his own system at KmikeyM.com. He works on projects in various forms with many people, all guided by the gentle hand of his shareholders who have invested their money and time to add accountability and expertise. Currently he is obsessing over his new company, Chroma.io, and coping with a crippling magazine addiction while still maintaining a full time relationship with the internet.
In March of this year the IRS decided that Bitcoin (and all virtual currency) is property. Bloomberg points out that, “Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop.”
And like stocks, this means you should hold your Bitcoin to get a better tax rate: “Bitcoins held for more than a year and then sold would face the lower tax rates applicable to capital gains -- a maximum of 23.8 percent compared with the 43.4 percent top rate on property sold within a year of purchase.”
In Section 3. Scope of the IRS Notice 2014-21.pdf it states that, “the use of convertible virtual currency to pay for goods or services in a real-world economy transaction, has tax consequences that may result in a tax liability.” The convertible aspect refers to the virtual currency that has an equivalent value for real currency. The notice the IRS put out is specifically dealing with these kinds of “convertible” virtual currencies and not something like an in-game currency which has no equivalent value.
In Video Game Land we have Free To Play (F2P) games that allow you to buy virtual currencies. But these are not convertible because you can never get real money back. If you buy a thousand gold coins for $39.99, spend it on a new flaming sword and then turn that into a million coins by slaying a dragon, you’re only rich in Video Game Land.
Unless of course games like VoidSpace become common. VoidSpace is an in-progress space-themed simulation game that will use the crypto currency Dogecoin in the game. Meaning the “gold” of the game will actually have a real world value. Meaning that if you do very well playing the game you are going to have an incredibly complicated tax filing. ;)
Are we trying to solve too many problem with technological solutions?
- Technology has given humanity the amazing ability to fix almost any problem, conditioning us to search for technological remedies to what might be social problems.
- Alleviating social inequity is a problem that technology must necessarily attempt to solve, but technology alone cannot shape how humans assemble their societies.
- Only by emphasizing the primary place of individual identity, human dignity, and universal values like empathy and emotion, can we hope to solve global issues that, so far, technology has been unable to conquer.
Radical Transformational Leadership: Strategic Action for Change Agents
With his collected letters recently being published, it's time to revisit this extraordinary thinker.
- Though the British philosopher died in 1973, his work continues to make an impact.
- A recently published collection, The Collected Letters Alan Watts, is a deep dive into his personal correspondences.
- Watts was an early proponent for spreading Eastern philosophy to Western culture.
Long hidden under trees, it's utterly massive
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