The way that the IRS treats video game currencies could be changing in a very big way. At some point last year, the IRS website added language that listed Fortnite's V-Bucks among other examples of virtual currency, including Bitcoin, Ether, and Roblox. The IRS website asserts that "The sale or other exchange of virtual currencies, or the use of virtual currencies to pay for goods or services, or holding virtual currencies as an investment, generally has tax consequences that could result in tax liability." The IRS website still has this messaging, but all references to the Fortnite currency have been removed. The IRS released a statement, clarifying the situation:
"The IRS recognizes that the language on our page potentially caused concern for some taxpayers. We have changed the language in order to lessen any confusion. Transacting in virtual currencies as part of a game that do not leave the game environment (virtual currencies that are not convertible) would not require a taxpayer to indicate this on their tax return."
That news should come as a relief for most gamers, at least temporarily. Since there doesn't seem to be a way for individual players to make capital gains on V-Bucks (or other forms of video game currency), it seems that it truly was an honest error on the IRS' part. Still, taxpayers who made transactions that resulted in capital gains using virtual currency will have to fill out a new form on their taxes this year on their 1040 form. That doesn't necessarily mean they'll end up paying, but the government is showing an interest in virtual purchases and potential money made as a result of these transactions.
It will be interesting to see if this changes, moving forward. As games like Fortnite, Apex Legends, League of Legends, and more continue to bring in massive profits for their publishers, it seems only natural that new laws will be put into place in order to better regulate the industry. Some gamers will certainly welcome that, but it's equally understandable that others might worry about the potential impact, moving forward. As the video game industry continues to grow by great leaps, it seems inevitable that more changes will come in the very near future.
Should the government treat V-Bucks like they do other digital currencies? Are you concerned about the potential tax implications? Let us know in the comments or share your thoughts directly on Twitter at @Marcdachamp to talk all things gaming!
Did you know ComicBook.com has a Pokemon podcast? That's right folks, A Wild Podcast Has Appeared is available every Thursday bringing you the best breakdowns of the week's biggest news from Jim Viscardi, Megan Peters & Christian Hoffer. Catch the newest episode right here or subscribe on iTunes today!
0 Response to "Do Fortnite Players Have to Report V-Bucks on Their Taxes?"
Post a Comment