Real Economy?
- Thread starter Vaelin
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Deronic
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- Deronic Kyle Derkmoore
Real Economy...
Just like real life there are limits or the lack of limits, now I suppose if you make enough in the service that is provided and get really lucky, you would need to file a seperate tax return to cover earnings. Real Economy meaning if you were to buy items from random people at garage sales and sell them to other people for profit being in the same catagory, if you make enough out of your hobby you should report your winnings. I know Casino Big winners are reported to the IRS on a special Form W-2G. If winnings are to be split, as with a lottery pool, winners are reported on a Form 5754 in USA. Now this is real life money the virtual universe (service known as Entropia Universe) is providing and not gambling so it is more of a hobby.
"Activities Not Engaged in For Profit - Hobby Loss (IRC Section 183)
1. IRC section 183(a) provides that no deductions shall be allowed
in the case of an activity not engaged in for profit, other than
those otherwise allowable under the Code, and supplies some criteria
to be used in making the determination as to the profit notice. IRC
section 183(d) gives the taxpayer a rebuttable presumption that an
activity is a business and not a hobby, if profit results from the
activity in three out of five (two out of seven in the case of horse
racing, breeding or showing) consecutive years.
2. Since a full presumption period is not available when the
taxpayer first begins the activity, IRC section 183(d) allows him to
make an election which will defer the determination until he has had
the opportunity to achieve the presumption during the first five (or
seven) years of the activity.
3. Examiners should be aware that failure to make a profit does
not in and of itself indicate a lack of a profit motive. This is true
regardless of whether the taxpayer has made an election under IRC
section 183(e) or not. The question of profit motive is a factual one,
and all facts must be considered in making any determination."
http://www.irs.gov/irm/part4/ch10s18.html#d0e161598
For more on the subject, see, Avoiding the treasury stigma of a hobby
http://www.nysscpa.org/cpajournal/old/14345325.htm
"excerpt taken from http://answers.google.com/answers/threadview?id=524087"
Just like real life there are limits or the lack of limits, now I suppose if you make enough in the service that is provided and get really lucky, you would need to file a seperate tax return to cover earnings. Real Economy meaning if you were to buy items from random people at garage sales and sell them to other people for profit being in the same catagory, if you make enough out of your hobby you should report your winnings. I know Casino Big winners are reported to the IRS on a special Form W-2G. If winnings are to be split, as with a lottery pool, winners are reported on a Form 5754 in USA. Now this is real life money the virtual universe (service known as Entropia Universe) is providing and not gambling so it is more of a hobby.
"Activities Not Engaged in For Profit - Hobby Loss (IRC Section 183)
1. IRC section 183(a) provides that no deductions shall be allowed
in the case of an activity not engaged in for profit, other than
those otherwise allowable under the Code, and supplies some criteria
to be used in making the determination as to the profit notice. IRC
section 183(d) gives the taxpayer a rebuttable presumption that an
activity is a business and not a hobby, if profit results from the
activity in three out of five (two out of seven in the case of horse
racing, breeding or showing) consecutive years.
2. Since a full presumption period is not available when the
taxpayer first begins the activity, IRC section 183(d) allows him to
make an election which will defer the determination until he has had
the opportunity to achieve the presumption during the first five (or
seven) years of the activity.
3. Examiners should be aware that failure to make a profit does
not in and of itself indicate a lack of a profit motive. This is true
regardless of whether the taxpayer has made an election under IRC
section 183(e) or not. The question of profit motive is a factual one,
and all facts must be considered in making any determination."
http://www.irs.gov/irm/part4/ch10s18.html#d0e161598
For more on the subject, see, Avoiding the treasury stigma of a hobby
http://www.nysscpa.org/cpajournal/old/14345325.htm
"excerpt taken from http://answers.google.com/answers/threadview?id=524087"
Vaelin
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Cool. Thanks for the info that was more than i expected. 
So, you say if one gets real lucky they can make substantial amounts of cash with this "hobby". I like that but what are the factors involved? i.e. what constitutes getting lucky? How hard is it to turn a profit? Can people kill you and take your shit?
So, you say if one gets real lucky they can make substantial amounts of cash with this "hobby". I like that but what are the factors involved? i.e. what constitutes getting lucky? How hard is it to turn a profit? Can people kill you and take your shit?Deronic
Mature
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Well I am primarly a hunter in the universe so you will hear from the hunting side. If you get lucky and kill a certain creature and happen to loot a rare weapon or armor, some items people are willing to pay lots of money for. Check auctions and bids on items Then again there is always a chance for an All Time High HOF, you can click F in game and bring up the Hall of Fame window for last 24 hours and click button to change to all time high. Now those only happen once in a long time but you may hit one if you are extreamly lucky well there isn't much chance for us hitting 1 but we can dream
Generally I am happy if I break even for the day. I usually don't break even lol, but still have fun.
Then again there is always a chance for an All Time High HOF, you can click F in game and bring up the Hall of Fame window for last 24 hours and click button to change to all time high. Now those only happen once in a long time but you may hit one if you are extreamly lucky well there isn't much chance for us hitting 1 but we can dream Generally I am happy if I break even for the day. I usually don't break even
lol, but still have fun.
Viateslav
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First welcome to Entropia Universe.... While your waiting for your download to finish i suggest you use the search function on this forum and look for "can i make money from this game" etc.
Its also interesting that whenever profit or tax is mentioned an American starts quoting IRS documentation as if that applies to everyone. Unless you live in America, the IRS have no influence over you or your money. If you are concerned then contact you local tax authority and me amazed at the lack of response & understanding of what you are talking about
ITS NOT IMPOSSIBLE... but then nor is climing mount Everest, just that not many haveVaelin said:
Its also interesting that whenever profit or tax is mentioned an American starts quoting IRS documentation as if that applies to everyone. Unless you live in America, the IRS have no influence over you or your money. If you are concerned then contact you local tax authority and me amazed at the lack of response & understanding of what you are talking about
There is only 1 zone where you can be looted by another player when killed by that player. This zone is a toxic area and you will need to take a anti toxic shot before entering. This is to stop you entering this area by mistake.Vaelin said: