Second Life - Virtual World

[vsjhoc]

This is way kewl:

http://secondlife.com/


"Second Life is a 3-D virtual world entirely built and owned by its residents. Since opening to the public in 2003, it has grown explosively and today is inhabited by a total of 1,211,391 people from around the globe.

From the moment you enter the World you'll discover a vast digital continent, teeming with people, entertainment, experiences and opportunity. Once you've explored a bit, perhaps you'll find a perfect parcel of land to build your house or business.

You'll also be surrounded by the Creations of your fellow residents. Because residents retain the rights to their digital creations, they can buy, sell and trade with other residents.


The Marketplace currently supports millions of US dollars in monthly transactions. This commerce is handled with the in-world currency, the Linden dollar, which can be converted to US dollars at several thriving online currency exchanges."

[sweeps]

Great post. This has me in the mood to watch The Matrix tonight.

Related story: IRS to Tax Your Second Life?

[Broken Arrow]

I've heard about it for a while, but all that I've heard is how people have become addicted to it, sometimes even losing their jobs and spouses to it. That and the controversy of having virtual currency being tied to real ones.

Personally, I haven't touched any MMOes of any kind, nor do I plan to.

[poundwise]

Weird.

I mean, it sounds cool at first look. But the more I read about it the more it seemed odd to me.

[PRICEPLUS]

I am busy enough living my first life!!

[Broken Arrow]

Originally Posted by PRICEPLUS

I am busy enough living my first life!!

Heheh. I hear ya. Same story here.

Then again, that's the allure of MMOs in general, and more specifically, Second Life. Because the virtual life gives you a chance to act out and become something we did not or can not do in our real life.

Hence the addiction....

[vsjhoc]

Originally Posted by poundwise

Weird.

I mean, it sounds cool at first look. But the more I read about it the more it seemed odd to me.

This is what they would have said twenty years ago about this forum and the blogs ...

[poundwise]

Originally Posted by vsjhoc

This is what they would have said twenty years ago about this forum and the blogs ...

I thought that's what they said now.

[tinapbeana]

yeah, see, when i first read the title of this thread i thought someone meant that this forum was their second life in the virtual world.... i spend way too much time here as it is, i don't think it would be wise for me to get this involved on yet another site. hard to save money when you no longer have a job!

[Hez]

I've used Second Life! It's a lot of fun. It was pretty good deal too, IMO. It was something like $9.99 to register an avatar to use, and that's the only charge...much more reasonable than a lot of video/computer games & there's no physical game consoles or disks or anything, so I don't have to worry about losing anything.

I haven't used it in months though. I've been too busy lately!

[sweeps]

Update: IRS taxation of online game virtual assets inevitable

If you are a hard-core player of virtual worlds like World of Warcraft, Second Life, EverQuest or There, IRS form 1099 may someday soon take on a new meaning for you.

That's because game publishers may well in the not-too-distant future have to send the forms ... even when those players don't convert the assets into cash.

[Broken Arrow]

Quick! Please tell me there is a tax-sheltered account I can stash my SavingAdvice points!

[sweeps]

Originally Posted by Broken Arrow

Quick! Please tell me there is a tax-sheltered account I can stash my SavingAdvice points!

Sure, just click the "Donate" link in this post. Problem solved.

[vsjhoc]

Originally Posted by Sweepsplayer

Update: IRS taxation of online game virtual assets inevitable

If you are a hard-core player of virtual worlds like World of Warcraft, Second Life, EverQuest or There, IRS form 1099 may someday soon take on a new meaning for you.

That's because game publishers may well in the not-too-distant future have to send the forms ... even when those players don't convert the assets into cash.

Does Ebay issue 1099s to sellers?

[sweeps]

Originally Posted by vsjhoc

Does Ebay issue 1099s to sellers?

No, eBay is pretty vocal about never wanting to send out 1099s.

[WellManicuredMan]

Originally Posted by Sweepsplayer

Update: IRS taxation of online game virtual assets inevitable

If you are a hard-core player of virtual worlds like World of Warcraft, Second Life, EverQuest or There, IRS form 1099 may someday soon take on a new meaning for you.

That's because game publishers may well in the not-too-distant future have to send the forms ... even when those players don't convert the assets into cash.

Some friends got me to start playing World of Warcraft a few months ago. Now I'm addicted. I don't understand how you could be taxed for virtual game items and money unless you made actual real money by selling it to someone else (this is against the rules for WoW though, and if the company catches you doing this they will ban your account).

Is this article trying to say that I might have to pay taxes on the silver and gold I get from killing monsters, etc? That makes no sense.

[cschin4]

Do you think alot of us are trading our "real worlds" for fantasy worlds? Seems like there is a never ending parade from TV to computer to video games to music, etc. I really worry about today's kids as they are just "plugged in" all the time. I think all these things are like the opium of the masses. If we are all plugged in to our fantasy worlds then who has time to care about anything else? I do my best to unplug my kids but it is a losing battle. And, I find I am more and more plugged in as well.

[Broken Arrow]

Originally Posted by WellManicuredMan

Is this article trying to say that I might have to pay taxes on the silver and gold I get from killing monsters, etc? That makes no sense.

The way I understand it is that many virtual items appears to have a real life dollar equivalent to it. So, when these items are bought and sold with real money, it's still commerce of sorts, even though the items in question are virtual rather than real. The fact that some people have amassed vast quantities of these virtual assets only draws attention to the issue.

However, I don't think you are at risk of being taxed just for playing a game within its virtual confines.

[sweeps]

Update: Taxing Virtual Worlds

In one recent law review article, a quartet of professors from Iowa State University argue for a "cash-out" rule--virtual profits in virtual currency wouldn't be taxed when used "in world"; they would be taxed only if they were converted into profits in real currency and transferred out of the game. They would apply this "cash out" rule to all sorts of virtual games. If you try to set up a system where people are taxed within the games, there is more chance people will game the system (so to speak) and claim unjustified losses, warns one of the authors, William Dilla, an accounting professor at Iowa State University. In other words, you'll get virtual abusive tax shelters.

[vsjhoc]

I'm going to open a virtual account in the Caiman Islands.