SecondLife Tax Implications

There’s an interesting article in this week’s Business in Vancouver about Second Life and its real life tax implications: “Taxing Events in your business Second Life”. Beware any foolhardy Second Life entrepreneur who thinks that making money in the virtual world is free: the tax man may be watching. The bottom line is that earnings your avatar makes are tax deductible just like earnings in the real world and should be recorded as such. (FYI the the Linden $ is currently trading at $.003 Canadian and holding its own better than the US dollar is these days!).

The article suggests having 2 avatars – one for personal pleasure (whatever that maybe) and another if you intend to do business in SL. By doing so you can easily track spending and income for tax purposes.

Apparently there’s a whole person dedicated to helping companies maximise the value of their SL ventures over at PriceWaterhouseCooper’s downtown office. I have asked this question before and I ask again, what self respecting business man has the time to sit on SecondLife and wait (and wait and wait…) while SL loads and reloads? Well I think I see the answer: one with plenty of patience who sees a growing potential market place as referenced by the $1,063,606 US spent in Second Life over last 24 hours alone. Little wonder revenue Canada has their eye on SL.

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