Diablo3 + Income + Taxes ?

[Wasikpp]

Hey,

Im wondering how you people, who earn money off Diablo solve taxes issues. Do you think its possible somehow to skip it, or how it is solved in your country?

Discuss

[CHandest]

I study tax law in Denmark and it's hard for them to tax private persons Paypal accounts. Eventhough I have put 50% of my income aside (Denmark is a sick country in the matter of taxes )

[renwo]

Unless you've made several hundred thousands, just split it between several online accounts (paypal, skrill, neteller, etc). Even if they notice, I highly doubt you'd get jail time for such "small" amounts.

I study tax law in Denmark and it's hard for them to tax private persons Paypal accounts. Eventhough I have put 50% of my income aside (Denmark is a sick country in the matter of taxes )

Is is hard because they dont know or because it's unclear if you have to pay at all?

[welbewoll]

because its hard for them to know, they can't just knock on paypals (or other money handlers) door and ask for your records, they would require a court order which they would present to paypal and only then would paypal release your information - then they could prove tax fraud on your side (because by law you should have declared your income)

however they won't get a court order without a reason, and if you are an average joe there is no reason to suspect you. lastly, even if you bragged to a neighbor who hates you about pulling in extra money on the side (money you don't declare to the state) and that neighbor would report you, it is still doubtful if the people responsible would bother with the administrative overhead to process your case if the sums involved are not substantial enough

[CHandest]

Sorry for being unclear, but as welbewoll just said :-)

[Fuzzynuts1]

In the US, paypal has to report any accounts with over $20000 AND 200 payments incoming to the IRS and you will be required to sort that at tax time just like any other income. You will have to figure out what are expenses and what is profit and claim that as such.
Example: 40000 incoming payments in paypal, 20000 sent out(gold expenses or something?) and 20000 deposited. You'll have to claim around 20000 (can be fudged a bit with office space, computer depreciation or whatever other deductions but nothing major)
If you're making pure profit from botting or whatever, you'll have to claim a larger percentage.

Paypal has your social security # so it is all linked through that, you can't split it between 2 accounts and avoid the caps or anything, it is combined by SSN.

New IRS rules require PayPal to report sales information - The Next Web


EDIT - I see you are posting from Poland, sorry this isn't helpful for you but maybe it will be for someone else. Try researching if Paypal reports to the tax collectors/government in Poland. In the US it was relatively safe to sell things via paypal and not declare it as income until this year with the new law passed.

[Wasikpp]

+rep for all the info,

However, I was more thinking if lets say in Poland we give tax report every one year, I have absolutely no clue what gold I got for free from friends, what I've found myself, what did my bots found, how much gold Ive made from flipping/trading from hc to sc and from sc to hc, and how much ive paid for gold to resell it.

Im completely not aware of how much I would even have to pay, and Im actually thinking about avoiding that in some smart way

[jackus]

Is is hard because they dont know or because it's unclear if you have to pay at all?

You should tell them that you get xxxx amount of extra cash on the side. But no one does when it is this few euros. I've made around 2400 euros since 15. of May (release of D3). All paypal wanted was to be sure I was the guy on my Paypal account and I could prove it.

Paypal just HAS to do it coz of the EU money laundering rules

[SKODGEDEN]

I doubt that anything will happen at all.
Ive withdrawn 4.3k euro since release of diablo3, by PayPal and the only thing there happened to me, are the same as to jackus.
My paypal got limiteed for a week or so ,they required a scanned copy of my Passport, some bill there prooved my address - Even tho ialready was verified.

But that's about it.

I doubt that they will come knock on your door, because the money you withdraw from your paypal -> your bank account, could come from anytihng rangeing from a toilet you sold to some random dude, or some virtual gold you sold.