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Are MMORPG goods theoretically taxable?

1/6/2006 10:12:39 PM, by Ryan Paul

Legal Affairs ran an extremely peculiar article this month about the taxability of MMORPG goods. Virtual items found within popular Internet roleplaying games are commonly sold or auctioned to other players for real world currency. Since such items clearly have legitimate market value, tax law is applicable. In the article, Ultima Online trader Julian Dibbell examines some of the implications. In June 2003, Dibbell stated that he would report his gaming income to IRS and pay taxes accordingly:

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