Quote Originally Posted by Tgo01 View Post
And that's part of this issue for this community in particular. If someone receives 20k from people during DR, but they spent 17k on the SimuCoins, then they really only earned 3k in profit, but the IRS is going to see 20k and will expect that to show up on their tax return as income unless the person can prove it wasn't all income. This is such a clusterfuck.
This exactly. We're dealing with bullshit virtual items and currencies and no way to prove any of it is real. Anything they see coming in is going to be assumed to be 100% profit when it might 5% profit or worse yet, a loss. A few years ago you might have paid $4k for that piece of gear and now you can barely sell it for half of its value? Doesn't matter, better get ready to pay tax on that 2k pure profit that you just made according to the IRS.