Selling RuneScape GP and Taxes

[NikeShoes]

Hello Sythe,

I've been looking all over the internet for a concrete answer to this, and I can't find one. It doesn't help that I'm a newbie with taxes and financials.

I will be selling around $20,000 worth of RuneScape GP in the near future, and I'm not sure how to report this to the IRS, or if I even need to.

Is it considered income or capital gain? I assume it's relevant to state that I have never been employed.

Furthermore, is it likely that I will be audited for suspicious activity due to the sudden appearance of this large sum of money in my bank account? Is there any way around this?

Is there a way I can sell this gp without even having to tie the money to a bank account? That way I can just pick up the cash and put it under my bed without having to worry about whether people will flag me for suspicious activities. The last thing I want to deal with is an audit where I have to prove that the money came from selling virtual game currency... I imagine that would be a nightmare. I just want to be able to use this money to pay off any college debts in the future.

Thanks,
Nike

 

[Fendle]

Western Union or Mail.


Western Union is just where someone sends you the cash and you can go pick it up in a place like Walgreens with the pick up number and some ID and you get cash in hand.

 

[RuneScapeJJ]

30 min session with R2Pleasent for 10$ available.

 

[Fendle]

30 min session with R2Pleasent for 10$ available.

I'm sure R2 doesn't advise people how to illegally hide from the IRS

 

[NikeShoes]

Fendle, this isn't illegal. I'm asking how to PROPERLY file this information. I don't know if this is supposed to be considered capital gain or income.

I suggest you reread my post because you seem to have misunderstood what I'm asking.

 

[Pockets]

Since it's a decent amount of money, it would be worth your time and the relatively low cost to meet with an accountant near you to figure out how to do it legally and cheapest.

 

[NikeShoes]

Hello everyone,

I spoke with a professional accountant today, and I explained the situation to him. He told me that my membership fees consitute the initital investment required for it to be filed as capital gain. Interestingly enough, this implies that anyone who has never bought membership cannot sell their gp legally without being heavily taxed.

Thanks for the help everyone, and I hope this thread can be an aid to anyone else in a similar situation.

 

[Assilio]

You dont need to register unless your buying with the intent to resell, if your only selling currencys you have hard earnt within a game sir, you are fine, even at 20k$, I mean ive just registered my accountant, and my business in the UK atm, and ive been advised that tax evasion, is basically buying something with the intend to sell at profit!... if youve made it and are bored of a game, you can say i was bored, realised theres a market of people who pay for it and sold it, it was in no way an intention of profit making, when you signed up im sure it was for fun, then you discovered money can be made, ive just registered my limited company, opened a business bank account and am working on my website, its also for virtual goods but as far as helping you register yourself, if its only for $20k and not to go into long term selling, theres no point as in most places taxes are paid yearly.