The IRS won't ask you to report 'Fortnite' V-Bucks on tax returns | Engadget
(Source: engadget.com)

clicks | 8 days ago | comments: discuss | tags: ethereum cryptocurrency


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(Original link: engadget.com)

Don't worry, you won't have to factor in-game currency into your taxes... at least, not yet. The IRS has removed a guideline ( cached here ) from October that treated Fortnite 's V-Bucks, Roblox's Robux and other in-game currencies with real monetary value as "convertible" currency that could be subject to federal taxes. In a follow-up, IRS Chief Counsel Michael Desmond confirmed to CNN Business that including in-game money was an error. The updated section now focuses on cryptocurrencies like Bitcoin and Ethereum, so you can likely rest easy if you received a V-Bucks gift card last year.
The tax forms won't clarify matters, though. Schedule 1 in Form 1040 asks taxpayers if they have "any financial interest in any virtual currency" without a definition or an indication of what to do next. While many will check with the IRS for a clarification or simply assume the tax bureau is referring to crypto, this could lead to confusion for gamers who aren't sure if their in-game cash needs to be declared.
The ambiguity has prompted calls for the IRS to explicitly outline its approach to in-game currency, and it might need to take action relatively soon given the sheer volume of transactions in games. Fortnite alone racked up an estimated $1.8 billion in worldwide revenue in 2019 from people buying season passes and cosmetic gear. While only a fraction of in-game currency use is likely to be of any concern to the US government, the numbers might grow too large for officials to ignore....