Paying taxes on Runescape Gold?

Just curious.. does anyone have to do this? Like if you made $50,000 in a year from selling Runescape gold would the IRS come looking? I would think PayPal would be an easy way for them to find out how much your making pretty easily.

 

The truth is you should but no1 does that untill they're reselling GP on large scale.
I'm about to register my own company to pay taxes for reselling gold myself so I dont get into trouble, like 20% profit less but safety IRL is worth it

 

Glad you're with us

I personally pay taxes over RS income since september 2011. In my opinion it's better to pay taxes and get less profit then taking the risk of huge fines and paying all taxes from the moment profit was made. Also you need to launder money if you decide to not pay taxes, again there's a risk of getting caught.

However I advice you only to pay taxes if you have a "steady" income for a longer time period then half a year. If you make like $500,- monthly you can easily take your profits and spend it under your governments radar.

Cheers!

 

I know it there s little faith in me at the moment. However, I do have plans on going large scale. Wanting to have 100+ bot farm.

How are you registering yourself as a buisness? An online buisness in virtual items?

 

that's the biggest problem I'm looking for solution of this. When I'll find good definition of company type I'll let you know if I dont forget

 

I pay taxes on mine, I probably wouldn't if every single male in my family for 3 generations weren't CPAs lol.

 

I'm pretty sure that if you make over a certain amount Paypal automatically reports your income to the IRS. If you're running a long term business that is making a substantial monthly income it would probably be a good idea to just bite the bullet and pay taxes to avoid issues.

 

Also the regulation is different in different countries. Earning above a certain amount is NSI and therefore taxable income.

 

Guys why are you wasting money registering a business? For what exactly? Odds are corporate taxes are higher than your natural tax bracket... and a lot more expensive if you don't know what you're doing.

You don't need to register just do the business and it's automatically a sole proprietorship. You could register with your local county as a sole proprietorship, but that's only necessary if you're doing business locally which you're not.

Correct. $20,000 USD/year received if you're in the US.

 

100+ bot farm?

If you're running that by yourself then all I can say is good luck

 

No I am not, I have two long time friends of mine working with me as well. Only have 5 bots atm but I'm planning on dedicating all resources towards new bots.

Does sole proprietorship fall into a lower tax bracket than a buisness? What would you claim the income is from? Digital goods?

 

Consult an accountant for advice. That would be your best bet.

 

We're registered providing online services. In theory this could be anything regarding to internet and making money.

This is why I can't answer you TJOC. Try Wiki to check the best options for your own country.

For me personal this was not an option. I've a registered partnership with 2 other regarding my business. Also selling GP is what we started with, now we're working on some other projects as well. Planning to expand where ever we can. In the beginning phase we decided to arrange everything in a an orderly fashion so this won't slow us down in the future.

However if you're doing GP sales yourself only and don't plan to expand your business you could try. I personally think starting a business is way better (if costs for your country are doable), you learn allot and when you want to expand you don't need to figure out how this work. This will definitely hold you up in your progress.

I agree on this. Do whatever you're good in, let other people do their job. Due to be done by someone who knows this save you a lot of time and you can be sure that it is done properly. I advice you to wait with this until it's necessary.

Cheers!

 

It would make sense in a lot of cases. In the States, business income can be taxed at the same level as personal income. Additionally, by setting up an LLC, you can pay yourself a reasonable wage, which you have to pay personal and self-employment tax on, and then collect the rest of the earnings from the business as capital gains. This makes it so that a large portion of the business's profits are not subject to a self-employment tax which can save a ton of money.

They are also very cheap and easy to setup and run in certain states. I got an LLC in Ohio for $125 and took just minutes for the paper work.

This is not tax advice. I am not an accountant.

 

so far.

 

PayPal reports it to the IRS if you receive over $20,000 or 200 transaction in a year, so yes you will need to pay taxes.

You can register an LLC not a corporation and still be sole proprietorship, advantages are you can keep personal and business expenses separate and with an LLC you're not personally liable for the company's debts or legal liabilities.