The US Internal Revenue Service (IRS) has updated the definition of virtual currency on its website. Not available in the new versiongame tokens - now they are not subject to declaration in tax reporting.
According to BloombergTax, now users,Owners of only game tokens will not have to affirmatively answer the question of ownership of cryptocurrencies in tax form 1040. This became possible after the IRS changed the complex and many misleading definition of virtual currency on its website.
Based on the original definitionvirtual currency, millions of game token holders in the United States would be required to affirmatively answer the question of ownership of crypto assets in form 1040. The recently revised annex to form 1040, which taxpayers use to file their annual tax returns, requires answering the question of whether they received , sold, exchanged or otherwise financially engaged in operations with cryptocurrencies.
Game tokens usually work in a "closed"digital economy, where you can’t exchange them for fiat currency. Such tokens are intended for making in-game purchases of virtual property for passing games, for example, Fortnite, Roblox, etc.
Sometimes game developers can exchange theirtokens for US dollars, but game companies are already registering such transactions in accordance with tax form 1099. Earlier, the Association of Entertainment Software Developers issued a statement on the subject of regulators considering gaming tokens as cryptocurrencies:
“Financial regulators who detailconsidered the status of game currencies, treated them completely differently than BTC and similar crypto assets precisely because they cannot be cashed. We believe this is the right approach, and we hope that upon closer inspection, the IRS will correct its leadership.
In November, it became known that the IRS is studying workcryptocurrencies and kiosks for the purchase of cryptocurrencies, and in October the agency issued the first guide in five years regarding the calculation of taxes from cryptocurrency transactions, as well as when receiving new coins as a result of forks and distributions by developers.
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